C. Eastwood, A. North, and M. West are manufacturers' representatives in the architecture business. Their capital...

 

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C. Eastwood, A. North, and M. West are manufacturers' representatives in the architecture business. Their capital accounts in the ENW partnership for 20X1 were as follows: C. Eastwood, Capital Debit 9/1 A. North, Capital M. West, Capital Credit 9,800 1/1 5/1 31,500 6,800 Debit 3/1 Credit Debit Credit 9,500 1/1 7/1 41,700 8/1 13,100 1/1 51,400 5,800 4/1 8,000 9/1 4,700 6/1 4,600 Required: For each of the following independent income-sharing agreements, prepare an income distribution schedule. a. Salaries are $16,400 to Eastwood, $20,900 to North, and $19,800 to West. Eastwood receives a bonus of 5 percent of net income after deducting his bonus. Interest is 10 percent of ending capital balances. Eastwood, North, and West divide any remainder in a 3:3:4 ratio, respectively. Net income was $81,270. C. Eastwood, A. North, and M. West are manufacturers' representatives in the architecture business. Their capital accounts in the ENW partnership for 20X1 were as follows: C. Eastwood, Capital Debit 9/1 A. North, Capital M. West, Capital Credit 9,800 1/1 5/1 31,500 6,800 Debit 3/1 Credit Debit Credit 9,500 1/1 7/1 41,700 8/1 13,100 1/1 51,400 5,800 4/1 8,000 9/1 4,700 6/1 4,600 Required: For each of the following independent income-sharing agreements, prepare an income distribution schedule. a. Salaries are $16,400 to Eastwood, $20,900 to North, and $19,800 to West. Eastwood receives a bonus of 5 percent of net income after deducting his bonus. Interest is 10 percent of ending capital balances. Eastwood, North, and West divide any remainder in a 3:3:4 ratio, respectively. Net income was $81,270.

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To prepare an income distribution schedule based on the given information and the incomesharing agre... View the full answer