Capital balances are $42,000; $38,000; and $20,000 for partners A, B, and C, respectively. ABC...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Capital balances are $42,000; $38,000; and $20,000 for partners A, B, and C, respectively. ABC partnership has net income of $90,000. Net income distribution is as follows: 1. Each partner receives interest of 5% based on their capital balances at the beginning of that year. 2. Partner B is entitled to $20,000 and Partner C is entitled to $10,000 in salaries 3. Any remaining profit/loss is split 2:3:5 between Partners A, B, and respectively. What is the journal entry to distribute the net income at year end? Round to the nearest dollar if necessary
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
