Dividing Partnership Net Income Required: Steve Jack and Chelsy Bernard formed a partnership, dividing income as follows: 1. Annual salary allowance to Bernard of $89,100. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Jack and Bernard, 1:2. Jack and Bernard had $48,000 and $81,000, respectively, in their January 1 capital balances. Net income for the year was $162,000. How much is distributed to Jack and Bernard? Note: Compute partnership share. Jack: $ Bernard: $

Dividing Partnership Net Income Required: Steve Jack and Chelsy Bernard formed a partnership, dividing income as follows: 1. Annual salary allowance to Bernard of $89,100. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Jack and Bernard, 1:2. Jack and Bernard had $48,000 and $81,000, respectively, in their January 1 capital balances. Net income for the year was $162,000. How much is distributed to Jack and Bernard? Note: Compute partnership share. Jack: $ Bernard: $

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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