Question

Question 1 Coburn (beginning capital, $57.000) and Webb (beginning capital $85,000) are partners. During 2017, the partnership earned net income of $72,000, and Coburn made drawings of $20,000 while Webb made drawings of $24,000 Your answer is partially correct. Try again. Assume the partnership income-sharing agreement calls for income to be divided 30% to Coburn and 70% 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 Income Summary 72000 Coburn, Capital Webb, Capital LINK TO TEXT Your answer is partially correct. Try again Assume the partnership income-sharing agreement calls for income to be divided with a salary of $35,000 to Coburn and $25,000 to Webb, with the remainder divided 30% to Coburn and 70% 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 72000 Income Summary Coburn, Capital Webb, Capital

Answer 1

So income will be distributed between partners in ratio of 30% and 70% Income Summary $ 72,000.00 To Cobum Capital To Webb Capital $ 21,600.00 $ 50,400.00 <<72000*30% <<72000*70% First salary will distributed and then later on profit would be distributed in given ratio Cobum Webb Total Salary $35,000.00 $ 25,000.00 $60,000.00 Income 3,600.00$ 8,400.00 $12,000.00 (72000- 60000)*30% $ 38,600.00 (72000- 60000)*70% 33,400.00 $72,000.00 Income Summary $ 72,000.00 To Cobum Capital To Webb Capital $ 38,600.00 S 33,400.00 <<72000*30% <<72000*70%