Question

pls show calculation tx

On January 1, 2021, the capital balances in Pharoah Partnership are as follows: Zaya Gable $27.000 Matthew Smith $20.160 Neither partner had any drawings in 2021. Your answer is correct. Prepare the closing entry to allocate the partnership profit if in 2021, the partnership reports profit of $75,600. There is no partnership agreement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually Debit Credit 75600 Date Account Titles and Explanation Dec. 31 Income Summary M.Smith, Capital Z Gable Capital ITo close Income Summary) 37800 37800 eTextbook and Media - Your answer is partially correct. Prepare the closing entry to allocate the partnership profit itin 2021, the partnership reports profit of $50,400. The Income ratio provides for salary allowances of $35 280 for Gable and $25,200 to Smith and the remainder to be shared equally. (Credit account titles are automatically indented when the amount is entered. Do not indenit m a y Debit Credit 50,400 Date Account Titles and Explanation Dec. 31 Income Summary : M.Smith, Capital Z Gable Capital ITo close Income Summary) 25200 25200 cTextbook and Media – Your answer is partially correct. Prepare the closing entry to allocate the partnership profit if in 2021, the partnership reports profit of $50,400. Assume the partnership agreement calls for profit to be divided with a salary of $33,600 to Gable and $25,200 to Smith. Gable is allowed 6% of interest on her beginning capital, and the remainder is divided 70%-30%. Round answers to decimal places. CR 5,276. Credit account titles are automatically indented when the amount is entered. Do not indent manual) Debit Credit 50400 Date Account Titles and Explanation Dec. 31 Income Summary Z Cable Capital M.Smith, Capital ITe closelnome Sursy 35280 15120

Answer 1

1

Profit will be distributed equally if deed is silent about profit sharing

	Debit	Credit
Income Summary	75600
M smith              $75600/2		37800
Z Gabie Capital $75600/2		37800

2

	Gabie	Smith	Income
			50400
Salary and Allowance	35280	25200	-60480
Loss			-10080
Distrbuted Equally	-5040	-5040	10080
Share of Profit	30240	20160

	Debit	Credit
Profit	50400
M Gabie Capital		30240
Z Smith Capital		20160

3

	Gabie	Smith	Income
			50400
Salary and Allowance	33600	25200	-58800
Interest on capital 17000*6%	1020		-1020
Loss			-9420
Distributed 70% and 30%	-6594	-2826	9420
Share of Profit	28026	22374	50400

		Debit	Credit
Profit		50400
M Gabie Capital			28026
M smith			22374