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Coburn (beginning capital, $62,500) and Webb (beginning capital $90,100) are partners. During 2014, the partnership earned net income of $67,800, and Coburn made drawings of $17,350 while Webb made drawings of $22,330.
Assume the partnership income-sharing agreement calls for income to be divided with a salary of $40,600 to Coburn and $35,700 to Webb, interest of 10% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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