C. Eastwood, A. North, and M. West are manufacturers’ representatives in the arc

Question

C. Eastwood, A. North, and M. West are manufacturers’ representatives in the architecture business. Their capital accounts in the ENW partnership for 20X1 were as follows:

For each of the following independent income-sharing agreements, prepare an income distribution schedule.

Salaries are $16,400 to Eastwood, $21,800 to North, and $18,200 to West. Eastwood receives a bonus of 5 percent of net income after deducting his bonus. Interest is 10 percent of ending capital balances. Eastwood, North, and West divide any remainder in a 3:3:4 ratio, respectively. Net income was $80,430. (Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.)

     

Interest is 10 percent of weighted-average capital balances. Salaries are $24,300 to Eastwood, $21,800 to North, and $26,400 to West. North receives a bonus of 10 percent of net income after deducting the bonus and her salary. Any remainder is divided equally. Net income was $69,760. (Do not round intermediate calculations. Round the final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.)

     

West receives a bonus of 20 percent of net income after deducting the bonus and the salaries. Salaries are $21,100 to Eastwood, $18,900 to North, and $15,300 to West. Interest is 10 percent of beginning capital balances. Eastwood, North, and West divide any remainder in an 8:7:5 ratio, respectively. Net income was $94,660. (Do not round intermediate calculations. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.)

     

C. Eastwood, Capital

Explanation / Answer

Ans

Note : Assumed that Net income is after considering salary

Ans 2

Ans 3

1 Details Eastwood North West Salaries                16,400.00                         21,800.00      18,200.00 Bonus 5% of net income after bonus -80430*5/105                  3,830.00 Interest on 10% capital (ending Balance) 2900 4340 5050 Remaining Net income(80430-3830-2900-4340-5050) 64310 19293 19293 25724                42,423.00                         45,433.00      48,974.00

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