At the end of its first year of operations on December 31, 2022, Crane Company's accounts show the following. Partner Art Niensted Greg Bolen Krista Sayler The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2022 has not been closed to the partners' capital accounts. (a) Journalize the entry to record the division of net income for the year 2022 under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. Drawings Capital $28,980 $60,480 11,844 37,800 12,600 31,500 2. 3. Net income is $37,800. Income is shared 6:3:1. Net income is $50,400. Niensted and Bolen are given salary allowances of $18,900 and $12,600, respectively. The remainder is shared equally. Net income is $23,940. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $18,900 salary allowance. The remainder is shared equally.
At the end of its first year of operations on December 31, 2022, Crane Company's accounts show the following. Partner Art Niensted Greg Bolen Krista Sayler The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2022 has not been closed to the partners' capital accounts. (a) Journalize the entry to record the division of net income for the year 2022 under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. Drawings Capital $28,980 $60,480 11,844 37,800 12,600 31,500 2. 3. Net income is $37,800. Income is shared 6:3:1. Net income is $50,400. Niensted and Bolen are given salary allowances of $18,900 and $12,600, respectively. The remainder is shared equally. Net income is $23,940. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $18,900 salary allowance. The remainder is shared equally.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question
H1.
Transcribed Image Text:At the end of its first year of operations on December 31, 2022, Crane Company's accounts show the following.
Partner
Art Niensted
Greg Bolen
Krista Sayler
(a)
1.
Drawings Capital
$28,980 $60,480
11,844
The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2022 has not been closed
to the partners' capital accounts.
2.
12,600
3.
37,800
Journalize the entry to record the division of net income for the year 2022 under each of the following independent assumptions.
(Credit account titles are automatically indented when amount is entered. Do not i dent manually.)
31,500
Net income is $37,800. Income is shared 6:3:1.
Net income is $50,400. Niensted and Bolen are given salary allowances of $18,900 and $12,600, respectively. The
remainder is shared equally.
Net income is $23,940. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a
$18,900 salary allowance. The remainder is shared equally.
No. Account Titles and Explanation
Debit
Credit
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