Left and Right are partners. Their capital accounts during 20X1 were as follows: Right, Capital Debit 8/23 Left, Capital T 6,000 Credit 1/1 4/3 10/31 Debit 3/5 9,000 Credit 1/1 7/6 30,000 8,000 6,000 Partnership net income is $50,000 for the year. The partnership agreement provides for the division of income as follows: 50,000 7,000 5,000 10/7 1. Each partner is to be credited 8 percent interest on his or her average capital (calculated after rounding to the nearest number of whole months). 2. Any remaining income or loss is to be divided equally. Required: Prepare an income distribution schedule. Note: Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.
Left and Right are partners. Their capital accounts during 20X1 were as follows: Right, Capital Debit 8/23 Left, Capital T 6,000 Credit 1/1 4/3 10/31 Debit 3/5 9,000 Credit 1/1 7/6 30,000 8,000 6,000 Partnership net income is $50,000 for the year. The partnership agreement provides for the division of income as follows: 50,000 7,000 5,000 10/7 1. Each partner is to be credited 8 percent interest on his or her average capital (calculated after rounding to the nearest number of whole months). 2. Any remaining income or loss is to be divided equally. Required: Prepare an income distribution schedule. Note: Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 9E
Related questions
Question
![Left and Right are partners. Their capital accounts during 20X1 were as follows:
Left, Capital
Debit
8/23
6,000
Credit
1/1
4/3
10/31
Profit percentage
Average capital
Net income
Interest on average capital
Residual income
Allocate
Total
$
30,000
8,000
6,000
Partnership net income is $50,000 for the year. The partnership agreement provides for the division of income as follows:
Left
0
1. Each partner is to be credited 8 percent interest on his or her average capital (calculated after rounding to the nearest number of
whole months).
2. Any remaining income or loss is to be divided equally.
%
Debit
3/5
Required:
Prepare an income distribution schedule.
Note: Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.
$
Right
0
Right, Capital
9,000
%
$
$
$
$
Total
Credit
1/1
7/6
10/7
0 %
50,000
7,000
5,000
0
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F89d0dcbf-20a1-4554-be86-3faf6158241d%2Fc5a5ef67-2e24-469d-be9d-0c7ffde808ee%2Ffa8mkfs_processed.png&w=3840&q=75)
Transcribed Image Text:Left and Right are partners. Their capital accounts during 20X1 were as follows:
Left, Capital
Debit
8/23
6,000
Credit
1/1
4/3
10/31
Profit percentage
Average capital
Net income
Interest on average capital
Residual income
Allocate
Total
$
30,000
8,000
6,000
Partnership net income is $50,000 for the year. The partnership agreement provides for the division of income as follows:
Left
0
1. Each partner is to be credited 8 percent interest on his or her average capital (calculated after rounding to the nearest number of
whole months).
2. Any remaining income or loss is to be divided equally.
%
Debit
3/5
Required:
Prepare an income distribution schedule.
Note: Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.
$
Right
0
Right, Capital
9,000
%
$
$
$
$
Total
Credit
1/1
7/6
10/7
0 %
50,000
7,000
5,000
0
0
0
0
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