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Question -
January 1, 2015 - McNabb joins the partnership by contributing $46 000 in cash. A new partnership agreement is drawn up. Brady, Manning and McNabb agree to salaries of $5 000 for each partner and a 5:4:3 income ratio.
December 31, 2015 - The business recorded a net income of $30 000. Brady had drawings of $20 000 and Manning had drawings of $4 000.
a) Record the entry to admit the new partner into the business.
b) Record the entry to allocate the net income to the partners' capital accounts.
c) Create a Statement of Partners' Equity for 2015.
Rossi Company produces a variety of garden tools in a highly automated manufacturing facility
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