Mary Wilson and Patrick Clark began a partnership several years ago called the gift consultant....
60.1K
Verified Solution
Link Copied!
Question
Accounting
Mary Wilson and Patrick Clark began a partnership several years ago called the gift consultant. Adjusted trial balance information for the year ended September 30,2014, appears below:
Account Balance
Account Balance
Account payable $18000
Account Receivable $47000
Accumulated depreciation, office furniture $6000
Accumulated depreciation, vehicles 21000
Allowance for doubtful account 3000
Cash 34000
Mary , capital 46000
Mary, withdrawal 50000
Consulting Revenue 214000
Expenses $94000
Note payable due March 2017 $25000
Office furniture 33000
Prepaid Rent 12000
Patrick, capital 85000
Patrick, withdrawals 75000
Unearned fees 7000
Vehicles 68000
Prepare calculations that show how the income should be allocated to the partners assuming the partnership agreement states that the loss/gain are to be shared by allowing an $88000 per year salary allowance to Clark, $18000 allowance per year to Wilson, 15% interest on the beginning of the year balances and the remainder equally. (note Clark invested $12000 during the year)
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!
