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to share ceive a profit or drew ca of $380, a20% in roblem 11-3A Partnership profit allocation, statement of changes in equity, and closing entries L02,3 excel CHECK FIGURES: 1c. Conway: $146.400; Chan: $125,600: Soott: $88.000 Ben Conway, Ida Chan, and Clair Scott formed $245,000, $280,000, and $175,000, respectively. They anticipate annual profit of $360,000 and are consides CCS Consulting by making capital contributions of ing the following alternative plans of sharing profits and losses: Required 1. Prep a. Equally: b. In the ratio of their initial investments; or c. Salary allowances of $110,000 to Conway, $85,000 to Chan, and $60,000 to Scott and 2. Calc interest allowances or i296 on initial investments, with any remaining balance shared equally. Problem Required CHECK FI Gale, Mc lows: Gal 3:2:5 rati record th unrelated 1. Prepare a schedule with the following column headings: Profit/Loss Share to Conway Share to Chan Share to Scott a. Use the schedule to show how a profit of $360,000 would be distributed under each of the alternative plans being considered 2. Prepare a statement of changes in equity showing the allocation of profit to the partners, as b. suming they agree to use alternative () and the profit actually earned for the year ended e.

Answer 1

The answer has been presented in the supporting sheet. Profit has been calculated by three methods and statement of change in equity has also been prepared and closing entries has been passed. For detailed answer refer the supporting sheets.