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Coburn (beginning capital, $ 62,000) and Webb (beginning capital $ 92,000) are partners. During 2022, the partnership earned net income of $ 73,000, and Coburn made drawings of $ 16,000 while Webb made drawings of $ 24,000.

Coburn (beginning capital, $ 62,000) and Webb (beginning capital $ 92,000) are partners. During 2022, the partnership earned net income of $ 73,000, and Coburn made drawings of $ 16,000 while Webb made drawings of $ 24,000.

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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Answer question completely. NOTE: this question is one question with multiple parts answer question fully.
Coburn (beginning capital, $ 62,000) and Webb (beginning capital $ 92,000) are partners. During 2022, the partnership earned net income of $ 73,000, and Coburn made drawings of $ 16,000 while Webb made drawings of $ 24,000. (a) Assume the partnership income-sharing agreement calls for income to be divided 40% to Coburn and 60% to Webb. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered, Do not indent manually.) Account Titles and Explanation Debit Credit (b) Assume the partnership income-sharing agreement calls for income to be divided with a salary of $ 34,000 to Coburn and $ 25,000 to Webb, with the remainder divided 40% to Coburn and 60% to Webb. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Account Titles and Explanation Attempts: 0 of 1 used Submit Answer Save for Later (c) Assume the partnership income-sharing agreement calls for income to be divided with a salary of $ 38,000 to Coburn and $ 33,000 to Webb, interest of 10% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Account Titles and Explanation (d. Compute the partners' ending capital balances under the assumption in part (c) above. Ending capital Coburn 2$ Webb 24
Transcribed Image Text:Coburn (beginning capital, $ 62,000) and Webb (beginning capital $ 92,000) are partners. During 2022, the partnership earned net income of $ 73,000, and Coburn made drawings of $ 16,000 while Webb made drawings of $ 24,000. (a) Assume the partnership income-sharing agreement calls for income to be divided 40% to Coburn and 60% to Webb. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered, Do not indent manually.) Account Titles and Explanation Debit Credit (b) Assume the partnership income-sharing agreement calls for income to be divided with a salary of $ 34,000 to Coburn and $ 25,000 to Webb, with the remainder divided 40% to Coburn and 60% to Webb. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Account Titles and Explanation Attempts: 0 of 1 used Submit Answer Save for Later (c) Assume the partnership income-sharing agreement calls for income to be divided with a salary of $ 38,000 to Coburn and $ 33,000 to Webb, interest of 10% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Account Titles and Explanation (d. Compute the partners' ending capital balances under the assumption in part (c) above. Ending capital Coburn 2$ Webb 24
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