Coburn (beginning capital, $59,000) and Webb (beginning capital $95,000) are partners. During 2020, the partnership earned net income of $68,000, and Coburn made drawings of $17,000 while Webb made drawings of $25,000.

Assume the partnership income-sharing agreement calls for income to be divided 40% to Coburn and 60% to Webb. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
Accounts ReceivableWebb, DrawingsNet (Loss) IncomeInventoryAllowance for Doubtful AccountsWebb, CapitalSalaries ExpenseIncome SummaryLoss on RealizationCoburn, DrawingsAccounts PayableCashNotes PayableEquipmentCoburn, CapitalAccumulated Depreciation - EquipmentDepreciation ExpenseGain on Realization
Accounts PayableAllowance for Doubtful AccountsGain on RealizationCoburn, DrawingsEquipmentNet (Loss) IncomeCashIncome SummarySalaries ExpenseDepreciation ExpenseAccumulated Depreciation - EquipmentAccounts ReceivableLoss on RealizationNotes PayableInventoryWebb, DrawingsCoburn, CapitalWebb, Capital
Allowance for Doubtful AccountsWebb, DrawingsIncome SummaryEquipmentCashGain on RealizationInventoryNotes PayableDepreciation ExpenseLoss on RealizationAccumulated Depreciation - EquipmentWebb, CapitalCoburn, CapitalCoburn, DrawingsSalaries ExpenseAccounts ReceivableAccounts PayableNet (Loss) Income

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Assume the partnership income-sharing agreement calls for income to be divided with a salary of $34,000 to Coburn and $26,000 to Webb, with the remainder divided 40% to Coburn and 60% to Webb. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
Coburn, DrawingsCoburn, CapitalNotes PayableIncome SummaryWebb, DrawingsAccumulated Depreciation - EquipmentEquipmentCashWebb, CapitalAllowance for Doubtful AccountsInventoryAccounts PayableNet (Loss) IncomeSalaries ExpenseGain on RealizationLoss on RealizationDepreciation ExpenseAccounts Receivable
Accumulated Depreciation - EquipmentCoburn, DrawingsGain on RealizationInventoryWebb, CapitalAccounts ReceivableIncome SummaryNotes PayableNet (Loss) IncomeDepreciation ExpenseEquipmentAllowance for Doubtful AccountsAccounts PayableSalaries ExpenseWebb, DrawingsCoburn, CapitalCashLoss on Realization
Loss on RealizationGain on RealizationAccounts PayableEquipmentCashAccumulated Depreciation - EquipmentAllowance for Doubtful AccountsSalaries ExpenseIncome SummaryDepreciation ExpenseNotes PayableWebb, CapitalCoburn, CapitalNet (Loss) IncomeAccounts ReceivableCoburn, DrawingsWebb, DrawingsInventory

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Assume the partnership income-sharing agreement calls for income to be divided with a salary of $38,000 to Coburn and $33,000 to Webb, interest of 11% on beginning capital, and the remainder divided 50%50%. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
EquipmentWebb, CapitalSalaries ExpenseAllowance for Doubtful AccountsCoburn, DrawingsGain on RealizationCashLoss on RealizationCoburn, CapitalIncome SummaryAccounts ReceivableDepreciation ExpenseNet (Loss) IncomeWebb, DrawingsInventoryNotes PayableAccumulated Depreciation - EquipmentAccounts Payable
EquipmentCoburn, DrawingsInventoryGain on RealizationAccounts ReceivableDepreciation ExpenseWebb, DrawingsWebb, CapitalAllowance for Doubtful AccountsNet (Loss) IncomeCashAccounts PayableSalaries ExpenseCoburn, CapitalIncome SummaryNotes PayableLoss on RealizationAccumulated Depreciation - Equipment
Salaries ExpenseAllowance for Doubtful AccountsNet (Loss) IncomeGain on RealizationDepreciation ExpenseWebb, DrawingsCoburn, CapitalAccumulated Depreciation - EquipmentEquipmentInventoryAccounts ReceivableLoss on RealizationAccounts PayableCashWebb, CapitalCoburn, DrawingsIncome SummaryNotes Payable

eTextbook and Media

Compute the partners ending capital balances under the assumption in part (c) above.

		Ending capital
Coburn		$
Webb		$