DJ and AM Co. reports net loss of $35,000. The partnership agreement provides for annual salaries of $15,000 for DJ and $20,000 for AM and interest allowances of $2,500 to DJ and $3,500 to AM. Any remaining income or loss is to be shared 70% for DJ and 30% for AM.

Instructions

Compute the amount of net income/loss distributed to each partner at year-end.

Prepare the necessary closing entries at year end.

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Elin HesselLv2

28 Sep 2019

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McGill and Smyth have capital balances on January 1 of $56,000 and $36,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $24,000 for McGill and $12,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth. (1) Prepare a schedule showing the distribution of net income, assuming net income is $90,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) (2) Prepare a schedule showing the distribution of net income, assuming net income is $30,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) Journalize the allocation of net income in each of the situations above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order presented in the previous part.)

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E 12.4 (LO 2) McGill and Smyth have capital balances on January of 50.000 and 40.000, respectively. The partnership income sharing agreement provides for (1) annual salaries of 22.000 for McGill and 13.000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth.

Instructions
a. Prepare a schedule showing the distributiob of net income, assuming net income is (1) 50.000 abd (2) 36.000

b. Journalize the allocation of net income in each of the situation above.

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McGIll and Symth have capital balances on January 1 of $50,000 and $40,000 repsectively . The partnership income sharing agreement provides for (1) annual salaries of $22,000 for Mcgill and $13,000 for smyth . (2) interest at 10% on beginning capital balances , and (3) remaining income or loss be shared 60% by Mcgill and 40% by Symth .

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(b) Journalize the allocation of net income in each of the situation above .

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