E15-3. Jones, Silva, and Thompson form a partnership and agree to allocate income equally after recognition of 10% interest on beginning capital balances and monthly salary allowances of $2,000 to Jones and $1,500 to Thompson. Capital balances on January 1 were as follows: Jones Silva Thompson $40,000 25,000 30,000 Required: Calculate the net income (loss) allocation to each partner under each of the following independent situations. 1. Net income for the year is $99,500. 2. Net income for the year is $38,300. 3. Net loss for the year is $15,100.

E15-3. Jones, Silva, and Thompson form a partnership and agree to allocate income equally after recognition of 10% interest on beginning capital balances and monthly salary allowances of $2,000 to Jones and $1,500 to Thompson. Capital balances on January 1 were as follows: Jones Silva Thompson $40,000 25,000 30,000 Required: Calculate the net income (loss) allocation to each partner under each of the following independent situations. 1. Net income for the year is $99,500. 2. Net income for the year is $38,300. 3. Net loss for the year is $15,100.

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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