Entries for Allocation of Net Income Danny Spurlock and Tracy Wilson decided to form a partnership on July 1, 20-1. Spurlock invested $100,000 and Wilson invested $25,000. For the fiscal year ended June 30, 20-2, a net income of $79,000 was earned. Determine the amount of net income that Spurlock and Wilson would receive under each of the following independent assumptions: Income to be allocated $fill in the blank 1 Spurlock Wilson Total 1. There is no agreement concerning the distribution of net income. $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 2. Each partner is to receive 10% interest on their original investment. The remaining net income is to be divided equally. $fill in the blank 5 $fill in the blank 6 $fill in the blank 7 3. Spurlock and Wilson are to receive a salary allowance of $33,000 and $24,000, respectively. The remaining net income is to be divided equally. $fill in the blank 8 $fill in the blank 9 $fill in
Entries for Allocation of Net Income Danny Spurlock and Tracy Wilson decided to form a partnership on July 1, 20-1. Spurlock invested $100,000 and Wilson invested $25,000. For the fiscal year ended June 30, 20-2, a net income of $79,000 was earned. Determine the amount of net income that Spurlock and Wilson would receive under each of the following independent assumptions: Income to be allocated $fill in the blank 1 Spurlock Wilson Total 1. There is no agreement concerning the distribution of net income. $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 2. Each partner is to receive 10% interest on their original investment. The remaining net income is to be divided equally. $fill in the blank 5 $fill in the blank 6 $fill in the blank 7 3. Spurlock and Wilson are to receive a salary allowance of $33,000 and $24,000, respectively. The remaining net income is to be divided equally. $fill in the blank 8 $fill in the blank 9 $fill in
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Entries for Allocation of Net Income
Danny Spurlock and Tracy Wilson decided to form a
Income to be allocated | $fill in the blank 1 | ||
Spurlock | Wilson | Total | |
1. There is no agreement concerning the distribution of net income. | $fill in the blank 2 | $fill in the blank 3 | $fill in the blank 4 |
2. Each partner is to receive 10% interest on their original investment. The remaining net income is to be divided equally. | $fill in the blank 5 | $fill in the blank 6 | $fill in the blank 7 |
3. Spurlock and Wilson are to receive a salary allowance of $33,000 and $24,000, respectively. The remaining net income is to be divided equally. |
$fill in the blank 8 | $fill in the blank 9 | $fill in the blank 10 |
4. Each partner is to receive 10% interest on their original investment. Spurlock and Wilson are to receive a salary allowance of $33,000 and $24,000, respectively. The remaining net income is to be divided as follows: Spurlock, 75% and Wilson, 25%. |
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