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Bread and Butter form a partnership by investing $150,000 and $180,000 respectively. Their partnership agreement stipulates that Bread will receive an annual salary allowance of
Bread and Butter form a partnership by investing $150,000 and $180,000 respectively. Their partnership agreement stipulates that Bread will receive an annual salary allowance of $18,000, and both partners will receive an interest allowan of 8% on their capital investment. Any profit remaining is to be allocated 40% to Bread, and 60% to Butter. Profit for their first year of operations is $110,000. Prepare the journal entry to allocate the profit to the partners
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