College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 19, Problem 2SEB
To determine
Determine the amount of net income received by Partner C and Partner H under each of the independent assumptions.
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Entries for Allocation of Net Income
Danny Spurlock and Tracy Wilson decided to form a partnership on July 1, 20-1.
Spurlock invested $80,000 and Wilson invested $20,000. For the fiscal year ended
June 30, 20-2, a net income of $81,000 was earned. Determine the amount of net
income that Spurlock and Wilson would receive under each of the following
independent assumptions:
Spurlock
Wilson
1. There is no agreement concerning the distribution of net
income.
2. Each partner is to receive 10% interest on their original
investment. The remaining net income is to be divided equally.
3. Spurlock and Wilson are to receive a salary allowance of
$35,000 and $26,000, respectively. The remaining net income is
to be divided equally.
4. Each partner is to receive 10% interest on their original
investment. Spurlock and Wilson are to receive a salary allowance
of $35,000 and $26,000, respectively. The remaining net income
is to be divided as follows: Spurlock, 75% and Wilson, 25%.
Entries for Allocation of Net Income
Danny Spurlock and Tracy Wilson decided to form a partnership on July 1, 20-1. Spurlock invested $100,000 and Wilson invested $25,000. For the fiscal year ended June 30, 20-2, a net income of $79,000 was earned. Determine the amount of net income that Spurlock and Wilson would receive under each of the following independent assumptions:
Income to be allocated
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Spurlock
Wilson
Total
1. There is no agreement concerning the distribution of net income.
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$fill in the blank 3
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2. Each partner is to receive 10% interest on their original investment. The remaining net income is to be divided equally.
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$fill in the blank 6
$fill in the blank 7
3. Spurlock and Wilson are to receive a salary allowance of $33,000 and $24,000, respectively.The remaining net income is to be divided equally.
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$fill in the blank 9
$fill in the blank 10
4. Each…
Assume the partnership income-sharing agreement calls for income to be divided with a salary of $30,000 to Coburn and
$25,000 to Webb, with the remainder divided 35% to Coburn and 65% to Webb. Prepare the journal entry to record the
allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent
manually.)
Account Titles and Explanation
>
Debit
Credit
Chapter 19 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 19 - Prob. 1TFCh. 19 - Prob. 2TFCh. 19 - Prob. 3TFCh. 19 - Prob. 4TFCh. 19 - Prob. 5TFCh. 19 - Prob. 1MCCh. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MC
Ch. 19 - Prob. 1CECh. 19 - Prob. 2CECh. 19 - Prob. 3CECh. 19 - Prob. 4CECh. 19 - Prob. 5CECh. 19 - Prob. 1RQCh. 19 - Prob. 2RQCh. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 1SEACh. 19 - Prob. 2SEACh. 19 - Prob. 3SEACh. 19 - Prob. 4SEACh. 19 - ENTRIES: PARTNERSHIP LIQUIDATION On liquidation of...Ch. 19 - Prob. 6SPACh. 19 - Prob. 7SPACh. 19 - Prob. 8SPACh. 19 - Prob. 9SPACh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1SEBCh. 19 - Prob. 2SEBCh. 19 - Prob. 3SEBCh. 19 - Prob. 4SEBCh. 19 - Prob. 5SEBCh. 19 - Prob. 6SPBCh. 19 - Prob. 7SPBCh. 19 - ENTRIES FOR DISSOLUTION OF PARTNERSHIP Cummings...Ch. 19 - Prob. 9SPBCh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1MYWCh. 19 - Prob. 1ECCh. 19 - Prob. 1MPCh. 19 - Prob. 1CPCh. 19 - Prob. 1COP
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