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Ben invested $110,000 and Will invested $99,500 in a new partnership. They agree to an annual interest allowance of 10% on the partners beginning-year capital
Ben invested $110,000 and Will invested $99,500 in a new partnership. They agree to an annual interest allowance of 10% on the partners beginning-year capital balance, with the balance of income or loss to be divided equally. Under this agreement, make the nessary journal entry to close income summary to the capital accounts partners if the annual partnership income is $202,000 for 2017.
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