Problem 12-1
The following was invested in RCA Partnership:
R. Reagan
J. Carter
J. Anderson
During its first calendar-year, the firm earned
.
Required
Prepare the entry to close the firm’s Income Summary account as of its December 31
year-end and to allocate the
net income to the partners under each
of the following separate assumptions: The partners
1)
Have no agreement on the method of sharing income and loss
2)
Agreed to share income and loss in the ratio of their beginning capital investments
3)
Agreed to share income and loss by providing annual salary allowances of
to Reagan,
to Carter, and
to Anderson;
granting
interest on the partners’ beginning capital investments; and
sharing the remainder equally.
Check (3) Cr. Anderson, Capital,
210,000$
80,000$
25,000$
40,000$
30,000$
66,500

 

  • 7 years ago
Prblem 12-1 Answer
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