1. R. Gena (beginning capital, $80,000) and C. Sala (beginning capital $120,000) are partners. During...
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Accounting
1. R. Gena (beginning capital, $80,000) and C. Sala (beginning capital $120,000) are partners. During 2019 the partnership earned net income of $95,000. Gena made drawings of $17,000 while Sala made drawings of $30,000. Instructions Assume the partnership income-sharing agreement calls for income to be divided with a salary of $30,000 to Gena and $25,000 to Sala, interest of 10% on beginning capital, and the remainder divided 70%-30%. a) Prepare a schedule of the income allocation to each partner. b) Prepare the journal entry to record the allocation of net income. c) Compute each partners' ending capital balances (T account for each)
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