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Wayne and Jayne are partners. Their initial capital investments were $150,000 and $190,000, respectively. At the end of the first year of operation, there is a net income of $180,000
Required:
Give the journal entry to record the income allocation to the partners for each of the following scenarios
a. Profits and losses are shared equally
b. Profits are shared according to the following scheme: 10% interest on the initial capital investments and the remainder is shared equally.
c. Profits are shared according the following scheme: There is a salary allocation of $80,000 to Wayne, $96,000 to Jayne. 10% interest on the initial capital investments and the remainder is shared equally.
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