Elliot, Ford, and Grant formed the E, F, and G partnership. Elliot invested $24,000, Ford...

Elliot, Ford, and Grant formed the E, F, and G partnership. Elliot invested $24,000, Ford $34,000, and Grant $42,000. Elliot will manage the store; Ford will work in the store three-quarters of the time; and Grant will not work.

Requirements

1. Compute the partners’ shares of profits and losses under each of the following plans:

2. Revenues for the year ended September 30, 2012, were $210,000, and expenses were $111,000. Under plan (b), prepare the partnership income statement for the year.