Solution-Make a journal entry to record the allocation

Make a journal entry to record the allocation

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Reference no: EM132709285

Question - Syawla and Reven began a partnership by investing $120,000 and $230,000, respectively. During its first year ended Dec 31, 2016, the partnership had a $99,000 net loss. The partners have agreed to share income and loss by granting a $12,000 per month salary allowance to Syawla, a $6,000 per month salary allowance to Reven, 10% interest on their initial capital investments, and the remaining balance shared according to their initial capital balances.

Required -

1. Prepare calculations showing how the $99,000 loss should be allocated to the partners.

2. Make a journal entry to record the allocation from your calculations above?

Reference no: EM132709285

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Make a journal entry to record the allocation

Reference no: EM132709285

Reference no: EM132709285

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