Entries for Allocation of Net Income Danny Spurlock and Tracy Wilson decided to form a partnership on July 1, 20-1. Spurlock invested $80,000 and Wilson invested $20,000. For the fiscal year ended June 30, 20-2, a net income of $81,000 was earned. Determine the amount of net income that Spurlock and Wilson would receive under each of the following independent assumptions: Spurlock wilson 1. There is no agreement concerning the distribution of net income. 2. Each partner is to receive 10% interest on their original investment. The remaining net income is to be divided equally. 3. Spurlock and Wilson are to receive a salary allowance of $35,000 and $26,000, respectively. The remaining net income is to be divided equally.

Entries for Allocation of Net Income Danny Spurlock and Tracy Wilson decided to form a partnership on July 1, 20-1. Spurlock invested $80,000 and Wilson invested $20,000. For the fiscal year ended June 30, 20-2, a net income of $81,000 was earned. Determine the amount of net income that Spurlock and Wilson would receive under each of the following independent assumptions: Spurlock wilson 1. There is no agreement concerning the distribution of net income. 2. Each partner is to receive 10% interest on their original investment. The remaining net income is to be divided equally. 3. Spurlock and Wilson are to receive a salary allowance of $35,000 and $26,000, respectively. The remaining net income is to be divided equally.

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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