Dividing Partnership Net Income Required: Steve Prince and Chelsy Bernard formed a partnership, dividing income as follows: 1. Annual salary allowance to Bernard of $135,090. 2. Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to Prince and Bernard, 1:2. Prince and Bernard had $45,000 and $117,000, respectively, in their January 1 capital balances. Net income for the year was $237,000. How much is distributed to Prince and Bemard? Note: Compute partnership share. Prince: S Bernard:
Dividing Partnership Net Income Required: Steve Prince and Chelsy Bernard formed a partnership, dividing income as follows: 1. Annual salary allowance to Bernard of $135,090. 2. Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to Prince and Bernard, 1:2. Prince and Bernard had $45,000 and $117,000, respectively, in their January 1 capital balances. Net income for the year was $237,000. How much is distributed to Prince and Bemard? Note: Compute partnership share. Prince: S Bernard:
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 3SEB
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![Dividing Partnership Net Income
Required:
Steve Prince and Chelsy Bernard formed a partnership, dividing income as follows:
1. Annual salary allowance to Bernard of $135,090.
2. Interest of 6% on each partner's capital balance on January 1.
3. Any remaining net income divided to Prince and Bernard, 1:2.
Prince and Bernard had $45,000 and $117,000, respectively, in their January 1 capital balances. Net income for the year was $237,000. How much is distributed to Prince and Bernard?
Note: Compute partnership share.
Prince: S
X
Bernard: S
X
L](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe72db9c3-1f9d-442a-ba62-bcb6d45fbdb1%2F7f0641fd-8db5-466f-819c-ca5511e2d0d8%2Fzsr0bq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Dividing Partnership Net Income
Required:
Steve Prince and Chelsy Bernard formed a partnership, dividing income as follows:
1. Annual salary allowance to Bernard of $135,090.
2. Interest of 6% on each partner's capital balance on January 1.
3. Any remaining net income divided to Prince and Bernard, 1:2.
Prince and Bernard had $45,000 and $117,000, respectively, in their January 1 capital balances. Net income for the year was $237,000. How much is distributed to Prince and Bernard?
Note: Compute partnership share.
Prince: S
X
Bernard: S
X
L
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