Bill Ace and Dennis Bud are partners in AMPAC Company. Net income for the year ended March

Question:

Bill Ace and Dennis Bud are partners in AMPAC Company. Net income for the year ended March 31, 2014, is $120,000.
a. How much net income should be allocated to each partner assuming there is no agreement?
b. Prepare the entry to allocate the net income.
c. Prepare the entry to allocate the $120,000 assuming it is a net loss.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...