Prepare the journal entry to record the net income

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Question - Coburn (beginning capital, $63,200) and Webb (beginning capital $88,900) are partners. During 2014, the partnership earned net income of $72,100, and Coburn made drawings of $18,890 while Webb made drawings of $25,770.

(a) Assume the partnership income-sharing agreement calls for income to be divided 45% to Coburn and 55% to Webb. Prepare the journal entry to record the allocation of net income.

(b) Assume the partnership income-sharing agreement calls for income to be divided with a salary of $29,900 to Coburn and $25,300 to Webb, with the remainder divided 45% to Coburn and 55% to Webb. Prepare the journal entry to record the allocation of net income.

(c) Assume the partnership income-sharing agreement calls for income to be divided with a salary of $39,100 to Coburn and $35,600 to Webb, interest of 12% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income.

(d) Compute the partners' ending capital balances under the assumption in part (c) above.

Reference no: EM132156211

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