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driana Gonzalez and Sylvester Van Horne formed a partnership, dividing income as follows: Annual salary allowance to Gonzalez of $25,000. Interest of 5% on each partner’s capital balance on January 1. Any remaining net income divided to Gonzalez and Van Horne, 2:1. Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000. Required: How much net income should be distributed to Gonzalez and Van Horne? Gonzalez: $fill in the blank 1 Van Horne: $fill in the blank 2

driana Gonzalez and Sylvester Van Horne formed a partnership, dividing income as follows: Annual salary allowance to Gonzalez of $25,000. Interest of 5% on each partner’s capital balance on January 1. Any remaining net income divided to Gonzalez and Van Horne, 2:1. Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000. Required: How much net income should be distributed to Gonzalez and Van Horne? Gonzalez: $fill in the blank 1 Van Horne: $fill in the blank 2

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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driana Gonzalez and Sylvester Van Horne formed a partnership, dividing income as follows:

  1. Annual salary allowance to Gonzalez of $25,000.
  2. Interest of 5% on each partner’s capital balance on January 1.
  3. Any remaining net income divided to Gonzalez and Van Horne, 2:1.

Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000.

Required:

How much net income should be distributed to Gonzalez and Van Horne?
Gonzalez: $fill in the blank 1
Van Horne: $fill in the blank 2

I got this question wrong for Gonzalez I put 49500 and Van home 24750 wrong.

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