Weygandt, Accounting Principles, 12e ACC 114/121 (ACC 114/ tice Gradebook ORION

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Weygandt, Accounting Principles, 12e ACC 114/121 (ACC 114/ tice Gradebook ORION Downloadable eTextbook ment FULL SCREEN PRINTER VERSTON BACK Question 1 At the end of Its first year of operations on December 31, 2017, NBS Company's accounts show the following. Partner Drawings Capital Art Niensted Greg Bolen Krista Sayler $22,900 13,700 11,400 $46,400 36,000 24,000 The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2017 has not been closed to the partners' capital accounts. Journalize the assumptions. (Credit account titles are automatically in manually.) entry to record the division of net income for the year 2017 under each of the following independent dented when amount is entered. Do not indent (1) Net income is $28,300. Income is shared 6:3:1 (2) Net income is $41,700. Niensted and Bolen (3) Net income is $18,700. Each partner is allowed interest of 10% on beginning capital balances. Nensted is are given salary allowances of $15,500 and $10,600, respectively. The remainder is shared equally given a $14,360 salary allowance. The remainder is shared equaly No. Account Titles and Explanation Debit 1. Income Summary A. Nensted, Capital t MTH231 Euam 2 Spr., doa ' Meh 231 sampl Exam 2-.pdf Show AN . 3000 Group, Se..oocx . MacBook Air FS F6 F7 5

Explanation / Answer

Case-1 DIVISION OF NET INCOME ART NIENSTED GREG BOLEN KRISTA SAYLER TOTAL Net income ($ 28300 in 6:3:1) 16980 8490 2830 28300 CASE-2 DIVISION OF NET INCOME ART NIENSTED GREG BOLEN KRISTA SAYLER TOTAL Salaries allowance 15500 10600 0 26100 Remaining profits (41700-26100) 5200 5200 5200 15600 (in the ratio of 1:1:1) Total share in profits 20700 15800 5200 41700 Case-3 DIVISION OF NET INCOME ART NIENSTED GREG BOLEN KRISTA SAYLER TOTAL Salaries allowance 14360 0 0 14360 Interest on capital 4640 3600 2400 10640 Remaining Loss (25000-18700) -2100 -2100 -2100 -6300 (in equal ratio) Total share in profits 16900 1500 300 18700 JOURNAL ENTRIES Case-1 Income Sumary 28300     Neinsted Capital 16980     Greg Bolen Capital 8490     Krista Sayler Capital 2830 Case-2 Income Sumary 41700     Neinsted Capital 20700     Greg Bolen Capital 15800     Krista Sayler Capital 5200 Case-3 Income Sumary 18700     Neinsted Capital 16900     Greg Bolen Capital 1500     Krista Sayler Capital 300 Req 2: DIVISION OF NET INCOME ART NIENSTED GREG BOLEN KRISTA SAYLER TOTAL Salaries allowance 14360 0 0 14360 Interest on capital 4640 3600 2400 10640 Total Ssalaries and interest 19000 3600 2400 25000 Remaining deficiency -2100 -2100 -2100 -6300 (in equal ratio) Total share in profits 16900 1500 300 18700 Req 3: PARTNERS CAPITAL STATEMENT ART NIENSTED GREG BOLEN KRISTA SAYLER TOTAL Beginning capital 46400 36000 24000 106400 Aadd: Net income 16900 1500 300 18700 63300 37500 24300 125100 Less: Drawings 22900 13700 11400 48000 Ending capital 40400 23800 12900 77100

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