Preparing Partial Financial Statements and Closing Entries The partnership of Robo and Swing, CPAS, reported revenues of $215,000 and expenses of $77,000 on their year-end work sheet. Their capital balances as of January 1, 20--, were $60,000 for I. Robo and $40,000 for B. Swing. No additional investments were made during the year. As stated in their partnership agreement, after withdrawing salary allowances of $65,000 for Robo and $35,000 for Swing, the partners each withdrew their full 10% interest allowances on their January 1 capital balances. No additional withdrawals were made. Any remaining net income is to be divided on a 45-55 basis. Required: 1. Prepare the lower portion of the income statement of the partnership for the year ended December 31, 20--, showing the division of the partnership net income for the year. Robo and Swing, CPAS Income Statement (Partial) For the Year Ended December 31, 20-- I. Robo B. Swing Total Net income Accounting numeric field Allocation of net income: Salary allowances 24 Interest allowances Remaining income Allocation of net income

Preparing Partial Financial Statements and Closing Entries The partnership of Robo and Swing, CPAS, reported revenues of $215,000 and expenses of $77,000 on their year-end work sheet. Their capital balances as of January 1, 20--, were $60,000 for I. Robo and $40,000 for B. Swing. No additional investments were made during the year. As stated in their partnership agreement, after withdrawing salary allowances of $65,000 for Robo and $35,000 for Swing, the partners each withdrew their full 10% interest allowances on their January 1 capital balances. No additional withdrawals were made. Any remaining net income is to be divided on a 45-55 basis. Required: 1. Prepare the lower portion of the income statement of the partnership for the year ended December 31, 20--, showing the division of the partnership net income for the year. Robo and Swing, CPAS Income Statement (Partial) For the Year Ended December 31, 20-- I. Robo B. Swing Total Net income Accounting numeric field Allocation of net income: Salary allowances 24 Interest allowances Remaining income Allocation of net income

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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