..ooo1nland Cel 6:20 PM edu gen wileyplus.com Problem 12-2A (Part Level Submissi
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..ooo1nland Cel 6:20 PM edu gen wileyplus.com Problem 12-2A (Part Level Submission) At the end of its first year of operations on December 31, 2017, NBS Company's accounts show the following. Art Niensited Greg Belen Krista Sayler $49,700 tuey 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. ournalize the entry to record the division of net income for the year 2017 under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Net income is $30,100. Income is shared 6: 31 2) Net income is $40,500. Niensted and Bolen are given salary allowances of $14,500 and $10,400, respectively. The remainder is shared equally. (3) Net income is $19,100. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $14,180 salary allowance. The remainder is shared equally. Altempts: 0 ef 3 used VE POR LATER The parts of this question must be completed in order. This part will be available when you complete the part aboveExplanation / Answer
(a) No. Account titles and explanations Debit Credit 1 Income summary 30100 Art's capital (30100*6/10) 18060 Greg's capital (30100*3/10) 9030 Krista's capital (30100*1/10) 3010 (Division of income to partners) 2 Income summary 40500 Art's capital (14500+5200) 19700 Greg's capital (10400+5200) 15600 Krista's capital (5200) 5200 (Note:1) (Division of income to partners) 3 Income summary 19100 Art's capital (14180+4970-2000) 17150 Greg's capital (3300-2000) 1300 Krista's capital (2650-2000) 650 (Note:2) (Division of income to partners) Notes: 1.Net income 40500 Less: salary allowance Art 14500 Greg 10400 24900 Balance 15600 Shared equally 5200 2.Net income 19100 Less: salary allowance Art 14180 Interest allowance Art (49700*10%) 4970 Greg (33000*10%) 3300 Krista (26500*10%) 2650 25100 Balance -6000 Shared equally -2000
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