Based on information in photo:Prepare a schedule showing the division of net income under assumption (3) abovePrepare a partner's capital statement for the year under assumption (3) above At the end of its first year of operations on December 31, 2022. Crane Company's accounts show the following.PartnerDrawingsCapitalArt Niensted$18,860$39,360Greg Bolen11,22824,600Krista Sayler8,20020,500The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2022 has not beenclosed to the partners' capital accounts.Your answer is correct.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 manualy.)1Net income is $24,600. Income is shared 6:3:1.Net income is $32,800. Niensted and Bolen are given salary allowances of $12.300 and $8.200. respectively. Theremainder is shared equally.2.Net income is $15,580. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a$12,300 salary allowance. The remainder is shared equally.3.No. Account Titles and ExplanationDebitCredit1.Income Summary24600A. Niensted, Capital14760G. Bolen, Capital7380K. Sayler, Capital24602.Income Summary32800A. Niensted, Capital16400G.Bolen, Capital12300K. Sayler, Capital41003.Income Summary15580A. Niensted, Capital14514G.Bolen, Capital736K. Sayler, Capital326

Answered: Based on information in photo: Prepare…

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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Based on information in photo:

Prepare a schedule showing the division of net income under assumption (3) above

Prepare a partner's capital statement for the year under assumption (3) above

At the end of its first year of operations on December 31, 2022. Crane Company's accounts show the following.
Partner
Drawings
Capital
Art Niensted
$18,860
$39,360
Greg Bolen
11,228
24,600
Krista Sayler
8,200
20,500
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.
Your answer is correct.
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 manualy.)
1
Net income is $24,600. Income is shared 6:3:1.
Net income is $32,800. Niensted and Bolen are given salary allowances of $12.300 and $8.200. respectively. The
remainder is shared equally.
2.
Net income is $15,580. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a
$12,300 salary allowance. The remainder is shared equally.
3.
No. Account Titles and Explanation
Debit
Credit
1.
Income Summary
24600
A. Niensted, Capital
14760
G. Bolen, Capital
7380
K. Sayler, Capital
2460
2.
Income Summary
32800
A. Niensted, Capital
16400
G.Bolen, Capital
12300
K. Sayler, Capital
4100
3.
Income Summary
15580
A. Niensted, Capital
14514
G.Bolen, Capital
736
K. Sayler, Capital
326

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A partnership seems to be a category of business in which 2 or more individuals split ownership and are also responsible for the firm's management and the profits or losses it creates. That money is distributed to individuals, who would then claim it on their income tax returns — the firm is not taxed independently on its earnings or losses, as corporations would.

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