Frontenac Company reported net income of $75,000. The partnership agreement provides for salaries of $25,000 to Miley

Question:

Frontenac Company reported net income of $75,000. The agreement provides for salaries of $25,000 to Miley and $18,000 to Guthrie. They divide the remainder 40% to Miley and 60% to Guthrie. Miley asks your help to divide the net income between the partners and to prepare the closing entry.

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...