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dited 8 percent interest on his or her average capital (calculated r loss is to be divided equally.

dited 8 percent interest on his or her average capital (calculated r loss is to be divided equally.

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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Left and Right are partners. Their capital accounts during 20X1 were as follows: Right, Capital 9,000 Left, Capital Debit 8/23 6,000 Credit 1/1 4/3 10/31 Profit percentage Average capital Net income Interest on average capital Residual income Allocate Total 30,000 8,000 6,000 Partnership net income is $50,000 for the year. The partnership agreement provides for the division of income as follows: $ 1. Each partner is to be credited 8 percent interest on his or her average capital (calculated after rounding to the nearest number of whole months). 2. Any remaining income or loss is to be divided equally. Left Required: Prepare an income distribution schedule. Note: Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign. 0 3/5 % Debit $ Right 0 % $ $ $ EA GA $ Credit 1/1 7/6 10/7 Total 50,000 7,000 5,000 3,780 % 0 0 0 0
Transcribed Image Text:Left and Right are partners. Their capital accounts during 20X1 were as follows: Right, Capital 9,000 Left, Capital Debit 8/23 6,000 Credit 1/1 4/3 10/31 Profit percentage Average capital Net income Interest on average capital Residual income Allocate Total 30,000 8,000 6,000 Partnership net income is $50,000 for the year. The partnership agreement provides for the division of income as follows: $ 1. Each partner is to be credited 8 percent interest on his or her average capital (calculated after rounding to the nearest number of whole months). 2. Any remaining income or loss is to be divided equally. Left Required: Prepare an income distribution schedule. Note: Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign. 0 3/5 % Debit $ Right 0 % $ $ $ EA GA $ Credit 1/1 7/6 10/7 Total 50,000 7,000 5,000 3,780 % 0 0 0 0
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