Cooper and Donald have a partnership agreement which includes the following provisions regarding sharing net'income or net loss:1.A salary allowance of $47,400 to Cooper and $35,100 to Donald.2.An interest allowance of 10% on capital balances at the beginning of the year.3.The remainder to be divided 60% to Cooper and 40% to Donald.The capital balance on January 1, 2020, for Cooper and Donald was $99,000 and $133,000, respectively. During 2020, the Cooper andDonald Partnership had sales of $489,000, cost of goods sold of $280,000, and operating expenses of $87,000.Prepare an income statement for the Cooper and Donald Partnership for the year ended December 31, 2020. As a part of the incomestatement, include a Division of Net Income to each of the partners. COOPER AND DONALD PARTNERSHIPIncome Statement%24%24

Income Statement Sales 489,0000 Less: Cost of goods sold 280,0000 Gross profit 209,000…

A salary allowance of $47,400 to Cooper and $35,100 to Donald. An interest allowance of 10% on capital balances at the beginning of the year. The remainder to be divided 60% to Cooper and 40% to Donald.

A salary allowance of $47,400 to Cooper and $35,100 to Donald. An interest allowance of 10% on capital balances at the beginning of the year. The remainder to be divided 60% to Cooper and 40% to Donald.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 2BCRQ

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Question

Cooper and Donald have a partnership agreement which includes the following provisions regarding sharing net'income or net loss:
1.
A salary allowance of $47,400 to Cooper and $35,100 to Donald.
2.
An interest allowance of 10% on capital balances at the beginning of the year.
3.
The remainder to be divided 60% to Cooper and 40% to Donald.
The capital balance on January 1, 2020, for Cooper and Donald was $99,000 and $133,000, respectively. During 2020, the Cooper and
Donald Partnership had sales of $489,000, cost of goods sold of $280,000, and operating expenses of $87,000.
Prepare an income statement for the Cooper and Donald Partnership for the year ended December 31, 2020. As a part of the income
statement, include a Division of Net Income to each of the partners.

COOPER AND DONALD PARTNERSHIP
Income Statement
%24
%24

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