CHAPTER 15, 8

SIDE NOTES: This question has three parts (A, B, and C), please answer the FULL question, please TYPE your answer, please LABEL your answer.

8 C. Eastwood, A. North, and M. West are manufacturers' representatives in the architecture business. Their capital accounts in the ENW partnership for 20X1 were as follows 5.88 points C. Eastwood, Capital 1/1 31,300 7,000 8,100 Skipped A. North, Capital 3/1 10,000 1/1 41,200 5,300 5,200 eBook M. West, Capital 1/151,000 8,000 8/1 13,000 Print 3,600 References Required: For each of the following independent income-sharing agreements, prepare an income distribution schedule a. Salaries are $15,200 to Eastwood, $20,900 to North, and $18,500 to West. Eastwood receives a bonus of 5 percent of net income after deducting his bonus. Interest is 10 percent of ending capital balances. Eastwood, North, and West divide any remainder in a 3:3:4 ratio, respectively. Net income was $81,900. (Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.)