Homework Answers
Solution A:
| Schedule of Divison of income | |||
| Particulars | Magda | Sue | Total |
| Salary Allowance | $7,000.00 | $6,500.00 | $13,500.00 |
| Remaining income (1:1) | -$1,750.00 | -$1,750.00 | -$3,500.00 |
| Total distribution | $5,250.00 | $4,750.00 | $10,000.00 |
| Journal Entries | |||
| Event | Particulars | Debit | Credit |
| A | Income summary Dr | $10,000.00 | |
| To Magda Capital | $5,250.00 | ||
| To Sue Capital | $4,750.00 | ||
| (To record division of income) | |||
Solution B:
| Schedule of Divison of income | |||
| Particulars | Magda | Sue | Total |
| Salary Allowance | $7,000.00 | $6,500.00 | $13,500.00 |
| Remaining income (1:1) | -$4,250.00 | -$4,250.00 | -$8,500.00 |
| Total distribution | $2,750.00 | $2,250.00 | $5,000.00 |
| Journal Entries | |||
| Event | Particulars | Debit | Credit |
| B | Income summary Dr | $5,000.00 | |
| To Magda Capital | $2,750.00 | ||
| To Sue Capital | $2,250.00 | ||
| (To record division of income) | |||
Solution C:
| Schedule of Divison of income | |||
| Particulars | Magda | Sue | Total |
| Salary Allowance | $7,000.00 | $6,500.00 | $13,500.00 |
| Remaining income (1:1) | -$12,750.00 | -$12,750.00 | -$25,500.00 |
| Total distribution | -$5,750.00 | -$6,250.00 | -$12,000.00 |
| Journal Entries | |||
| Event | Particulars | Debit | Credit |
| B | Magda capital Dr | $5,750.00 | |
| Sue Capital Dr | $6,250.00 | ||
| To Income summary | $12,000.00 | ||
| (To record division of income) | |||
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