Question

Exercise 19.4 Computing and recording allocation of net income with salaries and interest allowed. LO 19-4 Connie Lacy and Lelia Cook are partners who share profits and losses in the following manner. Lacy receives a salary of $92,000 and Cook receives a salary of $136,000. These amounts were paid to the partners and charged to their drawing accounts. Both partners also receive 10 percent interest on their capital balances at the beginning of the year. The balance of any remaining profits or losses is divided equally. The beginning capital accounts for 2019 were Lacy, $404,000, and Cook, $504,000. At the end of the year the partnership had a net income of $284,000. eBook Print Compute the amount of net income or loss to be allocated to each partner. (Negative amounts should be indicated by a minus sign.) Connie Lacy Lelia Cook Total 284,000 Net Income $ $ 5 92,000 40.400 132,400 136.000 .450.400 186,400 $ $ S Salary Allowances Interest Allowances Total salaries and interest Balance of income Balance of income allocated Income of each partner 318,800 (34 800) $ 132,400 1 86,400 $ 284,000

Answer 1

rate positively ..

	Connie Lacy	Lella cook	Total
Net income			284000
Salary allowance	92000	136000
Intrest allowance	40400	50400
Total salaries and interest	132400	186400	318800
Balance of income			-34800
Balance of income allocated	-17400	-17400
Income of each partner	115000	169000	284000