T points) provides for (1) balances and (3 ana sala es of $25,000 fo Johnson and
ID: 2436792 • Letter: T
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T points) provides for (1) balances and (3 ana sala es of $25,000 fo Johnson and $15 0001 balances on January 1 of $80,000 and $60,000 respectively,. The partnership agreement a (2) teres allowance of 20% on Bosh any remain ng ico me or loss is tobe shared 60% by Joh nsonand 40% by Bosh. Instructions partnership had net a Prepare a shedule showing the distrbution of net income for the partners assuming the income of $72,000. are the closing entries for the division of net income. Note: Write clearly and use proper labels (do not atej. To earn full credit you must show all the steps using appropriate levels and calculations as needed to allocate salary and interest allowance to partners. Do not simply show calculated amounts. DIVISION OF NET INCOME NI- Johnson Bosh Total J1 General Journal Date Account Titles and Explanation Ref.Debit CreditExplanation / Answer
Division of Income Johnson Bosch Total Net income 72000 Salary of partners 25000 15000 -40000 Remaining income 32000 Interest allowance 16000 12000 -28000 Remaining income 4000 Net income in 3:2 2400 1600 -4000 Share of income 43400 28600 0 Journal entry: Income Summary Account dr. 72000 Johnson Capital account 43400 Bosch Capital Account 28600
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