Qustior 1Question 1ABC Partnership has a profit of $150,000 for the year ended December 31, 2011. Thepartnership agreement states that profit and losses are to be distributed using salary allowances,interest allowances, and a ratio for the remainder. Information about the agreement and thebalance of the Drawings accounts is contained in the table below.doseAdams$35,000Baker$45,000Соорer$20,000Salary allowanceShif$85,000$65,000$50,000Interest of 10% based upon their averagecapital balances which are:Remainder shared in this ratioCtrl2.1Prepare a detailed schedule to show how the profit would be allocated among the three(а)partners.(b) Assume that the revenue and expense accounts have been closed. Prepare the remainingclosing entries.

Journal Entries are primary record maintained by an entity for the occurrence or non-occurrence of…

stion 1 Question 1 ABC Partnership has a profit of $150,000 for the year ended December 31, 2011. The partnership agreement states that profit and losses are to be distributed using salary allowances, interest allowances, and a ratio for the remainder. Information about the agreement and the balance of the Drawings accounts contained in the table below. Adams $35,000 Baker $45,000 Cooper $20,000 Salary allowance Interest of 10% based upon their average capital balances which are: Remainder shared in this ratio $85,000 $65,000 $50,000 2 2 1 Prepare a detailed schedule to show how the profit would be allocated among the three (а) partners. (b) Assume that the revenue and expense accounts have been closed. Prepare the remaining closing entries.

stion 1 Question 1 ABC Partnership has a profit of $150,000 for the year ended December 31, 2011. The partnership agreement states that profit and losses are to be distributed using salary allowances, interest allowances, and a ratio for the remainder. Information about the agreement and the balance of the Drawings accounts contained in the table below. Adams $35,000 Baker $45,000 Cooper $20,000 Salary allowance Interest of 10% based upon their average capital balances which are: Remainder shared in this ratio $85,000 $65,000 $50,000 2 2 1 Prepare a detailed schedule to show how the profit would be allocated among the three (а) partners. (b) Assume that the revenue and expense accounts have been closed. Prepare the remaining closing entries.

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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