On January 1, 2016, the capital balances in Maha Company are Maha $40,000, and Jamila...
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Accounting
On January 1, 2016, the capital balances in Maha Company are Maha $40,000, and Jamila $35,000. The income ratio provides for salary allowances of $15,000 for Maha, then 10% reward to Jamila and the remainder equally. Required: 1) Prepare an Appropriation of profit \& Loss account. 2) Journalize the entry to record the division of net income for the year 2016 under each of the following independent assumptions. a) In 2016 the partnership reports net profit of $60,000. b) In 2016 the partnership reports net Loss of $60,000
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