PB1. LO 15.3 The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partner's capital account.

PB1. LO 15.3 The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partner's capital account.

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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Question

PB1. LO 15.3 The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary
and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or
loss for the year is:
A. $10,000
B. $5,000
C. ($12,000)
In addition, show the resulting entries to each partner's capital account.

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Step 2 A) i) Statement showing the schedule of profit and losses when profit is $10,000

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Step 3 A) ii) Journal entry

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Step 4 B) i) Statement showing the schedule of profit and losses when profit is $5,000

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Step 5 B) ii) Journal entry

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Step 6 c) i) Statement showing the schedule of profit and losses when loss is 12,000

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Step 7 c) ii) Journal entry

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