Anderson,Moore,andBrennerhave capital balances of$24,000,$36,000,and$60,000,respectively. The partners share profits and losses as follows:a.The first$50,000is divided based on the partners' capital balances.b.The next$50,000is based on service, shared equally byAndersonandBrenner.Mooredoes not receive a salary allowance.c.The remainder is divided equally. Requirements1.Compute each partner's share of the$130,000net income for the year.2.Journalize the closing entry to allocate net income for the year.

Partnership refers to an agreement where two or more people come together for a common goal. The…

Answered: Anderson, Moore, and Brenner have…

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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Question

Anderson,

Moore,

and

Brenner

have capital balances of

$24,000,

$36,000,

and

$60,000,

respectively. The partners share profits and losses as follows:

a.	The first $50,000 is divided based on the partners' capital balances.
b.	The next $50,000 is based on service, shared equally by Anderson and Brenner. Moore does not receive a salary allowance.
c.	The remainder is divided equally.

Requirements

1.	Compute each partner's share of the $130,000 net income for the year.
2.	Journalize the closing entry to allocate net income for the year.

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