Question

They predict annual partnership net income of $508,500 and are considering the following alternative plans of sharing income and loss equally in the ratio of the initial capital investments or salary allowances of $84,400 to Mo, $63,300 to Lu, and $95,500 to Barb, interest allowances of 10% on their initial capital investments, and the remaining balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb. 3. Prepare the December 31 journal entry to close Income Summary assuming they agree to use plan cand that net income is $508.500. Mo, Lu, and Barb withdraw 540,500,554,500, and 570,500, respectively at year end. Also close the withdrawals accounts View transaction list Journal entry worksheet Record the entry to dose the income summary account assuming the partners agree to use plan c and net income is $50, 500 Notes Enter Gebits before credits. General Journal come summary come Debit Credit Dec 31 500 or < Prev 3 of 3 !!! Next

Answer 1

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JooRNAL ETRY Anss General JOURNAC CreDiT DE BIT Date |Cneme SmeAlc 7в Мо, Gpied To Lu, Caidrl Dr508,500 Dec 3 18,0 165,120 | क5,88० AIC AIC о Вaть, Сорied AC P40500 Mo, Copidel La,Copisl Barb, Copidel To Mo, rawg рес-31. AlC 54,S00 AMC H0, SOD AlC rasing TO BAnb, Orawng TO Lu S4,50 AIC 4, SOD AIC rkiDivion Net ncome Toll 84,4003,3 0095,500 43,200 4816086,00o Barb MO Salay allowante Suterest une @ to 774030,lo0 bakince 173,300358071,7| 79,300 $T8,000165,1201538508500 Net gncame