Current Attempt in Progress McGill and Smyth have capital balances on January 1 of $41,000 and $34,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $25,000 for McGill and $17,000 for Smyth, (2) interest at 12% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. (a) (1) Prepare a schedule showing the distribution of net income, assuming net income is $85,000. (If an amount duces the account balance then enter with a negative sign preceding the number or parenthesis, e.g.-15,000, (15,000).) Salary allowance Interest allowance. $ DIVISION OF NET INCOME McGill 25000 4920 $ Smyth 17000 4080 Total 42000

Current Attempt in Progress McGill and Smyth have capital balances on January 1 of $41,000 and $34,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $25,000 for McGill and $17,000 for Smyth, (2) interest at 12% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. (a) (1) Prepare a schedule showing the distribution of net income, assuming net income is $85,000. (If an amount duces the account balance then enter with a negative sign preceding the number or parenthesis, e.g.-15,000, (15,000).) Salary allowance Interest allowance. $ DIVISION OF NET INCOME McGill 25000 4920 $ Smyth 17000 4080 Total 42000

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 4CE

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