Textbook LO 15.3 The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Magda 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 for the year is: $25,000. Prepare Journal Entry for the distribution of net income to partner's capital account Total Net Income to be distributed Profit sharing ratio Magda Sue Total
Textbook LO 15.3 The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Magda 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 for the year is: $25,000. Prepare Journal Entry for the distribution of net income to partner's capital account Total Net Income to be distributed Profit sharing ratio Magda Sue Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I am having trouble finishing my accounitng hoemwork, could you help me? thank you!
Transcribed Image Text:1
2
CO
3
4
5 Total Net Income to be distributed
6
7
Profit sharing ratio
8
Salary allowance
9 Remaining income
10
11
12-13
A
Textbook LO 15.3
The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after
Magda 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 for
the year is: $25,000. Prepare Journal Entry for the distribution of net income to
partner's capital account
14
15
16
17
18
19
20
21
22
23
Total division of income
Date
Dec. 31
B
Account Title
To record the distribution of net income
Income Summary
Magda, Capital
Sue, Capital
C
Magda
D
Debit
Sue
E
Credit
Total
LL
F
G
H
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Is there no profit sharing ratio for the net income distribution board?
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