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3. The partners agreed to share income by giving a $56,000 per year salary allowance to Ramer, a $46,000 per year salary allowanc to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $190,000. Note: Enter all allowances as positive values. Enter losses as negative values.

3. The partners agreed to share income by giving a $56,000 per year salary allowance to Ramer, a $46,000 per year salary allowanc to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $190,000. Note: Enter all allowances as positive values. Enter losses as negative values.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ramer and Knox began a partnership by investing $62,000 and $93,000, respectively. During its first year, the partnership earned $190,000. Prepare calculations showing how the $190,000 income is allocated under each separate plan for sharing income and loss. 3. The partners agreed to share income by giving a $56,000 per year salary allowance to Ramer, a $46,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $190,000. Note: Enter all allowances as positive values. Enter losses as negative values. Ramer Knox Total Net Income Salary allowances Interest allowances Total salary and interest Balance of income Balance allocated equally Balance of income Shares of the partners $ 0 $ 0 0 0 0
Transcribed Image Text:Ramer and Knox began a partnership by investing $62,000 and $93,000, respectively. During its first year, the partnership earned $190,000. Prepare calculations showing how the $190,000 income is allocated under each separate plan for sharing income and loss. 3. The partners agreed to share income by giving a $56,000 per year salary allowance to Ramer, a $46,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $190,000. Note: Enter all allowances as positive values. Enter losses as negative values. Ramer Knox Total Net Income Salary allowances Interest allowances Total salary and interest Balance of income Balance allocated equally Balance of income Shares of the partners $ 0 $ 0 0 0 0
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