Assume the partnership income-sharing agreement calls for

Reference no: EM13598193

O. Guillen (beginning capital, $60,000) and K. Williams (beginning capital ($90,000) are partners. During 2010, the partnership earned net income of $70,000, and Guillen made drawings of $18,000 while Williams made drawings of $24,000.

1. Assume the partnership income-sharing agreement calls for income to be divided 45% to Guillen and 55% to Williams. Prepare the journal entry to record the allocation of net income. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

2.Assume the partnership income-sharing agreement calls for income to be divided with a salary of $30,000 to Guillen and $25,000 to Williams, with the remainder divided 45% to Guillen and 55% to Williams. Prepare the journal entry to record the allocation of net income. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

3. Assume the partnership income-sharing agreement calls for income to be divided with a salary of $40,000 to Guillen and $35,000 to Williams, interest of 10% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

4. Compute the partners' ending capital balances under the assumption in the previous part of the question.

Reference no: EM13598193

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