Answer A only

Assignment 1 - Allocation of Partnership Income Complete the following assignment and submit your work to the dropbox. Record your responses on the spreadsheet template. 1. Ahmed and Ali are partners in a small business. Their partnership agreement states that net income is divided based on annual salaries of $20 000 for Ahmed and $25 000 for Ali, and an income ratio of 3:2. Calculate the net income allocation and record the journal entry, based on the following unrelated situations: (a) net income of $100 000 (b) net loss of $4 000. 2. Business partners Baliva, Masi, and Romalati have a partnership agreement that outlines a detailed formula for sharing profits and losses. Baliva, Masi, and Romalati earn annual salaries of $60 000, $70 000, and $80 000 respectively. They also earn a fixed percentage of interest on their capital balances which are $50 000, $50 000, and $70 000 respectively. Any remaining income is allocated using an income ratio of 30%, 30% and 40% respectively. Calculate the net income allocation and record the journal entry under the following unrelated situations: (a) net income of $400 000, and 7% on capital balances (b) net income of $50 000, and 5% on capital balances. Rubric 1 Question 1 Question 2 CALCULATIONS General Journal Particulars Date Debit Credit Ahmed Ali Total Net Income Income Distribution Net Income alocated PRIOR to ratio application Net Income to be allocated based on income ratio Share of income based on income ratio Total allocation of net income Income Ratio Net Loss Income Distribution Salary Net Income alocated PRIOR to ratio application Net Income to be allocated based on income ratio Share of income based on income ratio Total location of net income