Nabb & Fry Co. reports net income of $29,000. Interest allowances are Nabb $6,000 and Fry $5,600, salary allowances are Nabb $14,100 and Fry $10,900, and the remainder is shared equally. Show the distribution of income. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).) Nabb Fry Total Salary Allowance Interest Allowance Remaining Excess/deficiancy total division of net income
Nabb & Fry Co. reports net income of $29,000. Interest allowances are Nabb $6,000 and Fry $5,600, salary allowances are Nabb $14,100 and Fry $10,900, and the remainder is shared equally. Show the distribution of income. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).)
| Nabb | Fry | Total | |
| Salary Allowance | |||
| Interest Allowance | |||
| Remaining Excess/deficiancy | |||
| total division of net income |
|
>Partnership Income (Loss) is allocated based on the partnership agreement. |
|
>The Net Income or Loss is usually allocated to partners' capital account in the form of: |
|
--Salary allowance |
|
--Interest allowance |
|
--Remaining net income or loss. |
|
>The allocation can be based on: |
|
--Profit sharing ratios, |
|
--Capital balances, |
|
--Equal sharing, etc. |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
