Req 1. | ||||||
Statement of allocation of Income | ||||||
Mc Grill | Smyth | Total | ||||
Salary allowance | 16,000 | 13,000 | 29,000 | |||
Interest allowance | 5,700 | 4,700 | 10,400 | |||
Total Salaries and interest | 21,700 | 17,700 | 39,400 | |||
Remaining Income in 6:4 | 26760 | 17840 | 44600 | |||
Total Division of Net income | 48,460 | 35,540 | 84,000 | |||
Req 2. | ||||||
Statement of allocation of Income | ||||||
Mc Grill | Smyth | Total | ||||
Salary allowance | 16,000 | 13,000 | 29,000 | |||
Interest allowance | 5,700 | 4,700 | 10,400 | |||
Total Salaries and interest | 21,700 | 17,700 | 39,400 | |||
Remaining Deficiency in 6:4 | -5640 | -3760 | -9400 | |||
Total Division of Net income | 16,060 | 13,940 | 30,000 | |||
Journal entries | ||||||
S.no. | Accounts title and explanation | Debit $ | Credit $ | |||
1 | Income Summary | 84,000 | ||||
Mc. Grill Capital account | 48,460 | |||||
Smyth Capital account | 35,540 | |||||
(for allocation of income) | ||||||
2 | Income Summary | 30,000 | ||||
Mc. Grill Capital account | 16,060 | |||||
Smyth Capital account | 13,940 | |||||
(for allocation of income) | ||||||
Exercise 12-4 McGill and Smyth have capital balances on January 1 of $57,000 and $47,000, respectively....
Exercise 12-4 McGill and Smyth have capital balances on January 1 of $57,000 and $47,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 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. (1) Prepare a schedule showing the distribution of net income, assuming net income is $84,000. (If an amount reduces the account balance then...
Exercise 12-4 McGill and Smyth have capital balances on January 1 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. (1) Prepare a schedule showing the distribution of net income, assuming net income is $50,000. (If an amount reduces the account balance then...
*Exercise 12-04 a-b (Video) McGill and Smyth have capital balances on January 1 of $41,000 and $34,000, rspectively. The partnership income-sharing agreement provides for (1) annual salaries of $25,000 for McGill and $17,000 for Smyth, (2) Interest at 12% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. Prepare a schedule showing the distribution of net income, assuming net income is $85,000. (If an amount reduces thcunt balance then...
McGill and Smyth have capital balances on January 1 of $60,000 and $48,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $20,000 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. Exercise 12-04 a-b (Part Level Submission) (Video) McGill and Smyth have capital balances on January 1 of $60,000 and $48,000, respectively. The partnership income-sharing agreement...
Is (Video) McGill and Smyth have capital balances on January 1 of $53,000 and $34,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $17,000 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 $66,000. (If an amount reduces the account balance then...
McGill and Smyth have capital balances on January 1 of $42,000 and $40,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $23,000 for McGill and $14,000 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 $84,000. (If an amount reduces the account balance then enter with...
Exercise 12-04 a-b (Part Level Submission) (Video) McGill and Smyth have capital balances on January 1 of $54,000 and $37,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $20,000 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. (a) Your answer is partially correct. Try again. (1) Prepare a schedule showing the distribution of net income,...
everything is correct except red boxes Exercise 12-4 McGill and Smyth have capital balances on January 1 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. Your answer is partially correct. Try again. (1) Prepare a schedule showing the distribution of net...
McGill and Smyth have capital balances on January 1 of $60,000 and $48,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $20,000 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. Please fill out the incorrect chart. McGill and Smyth have capital balances on January 1 of $60,000 and $48,000, respectively. The partnership income-sharing agreement provides...
Not sure how to finish the questions. Exercise 12-04 a-b (Video) McGill and Smyth have capital balances on January 1 of $48,000 and $30,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $22,000 for McGill and $18,000 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...