=+PR 12-1A Entries and balance sheet for partnership obj. 2

✔ 3. Schmidt net income, $47,200 Chapter 12 Accounting for Partnerships and Limited Liability Companies 567 Desmond Drury and Ty Wilkins have decided to form a partnership. They have agreed that Drury is to invest $20,000 and that Wilkins is to invest $30,000. Drury is to devote full time to the business, and Wilkins is to devote one-half time. The following plans for the division of income are being considered:

a. Equal division.

b. In the ratio of original investments.

c. In the ratio of time devoted to the business.