Entries for Allocation of Net Income

Danny Spurlock and Tracy Wilson decided to form a partnership on July 1, 20-1. Spurlock invested $80,000 and Wilson invested $20,000. For the fiscal year ended June 30, 20-2, a net income of $81,000 was earned. Determine the amount of net income that Spurlock and Wilson would receive under each of the following independent assumptions:

Income to be allocated			$fill in the blank 1
	Spurlock	Wilson	Total
1. There is no agreement concerning the distribution of net income.	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4
2. Each partner is to receive 10% interest on their original investment. The remaining net income is to be divided equally.	$fill in the blank 5	$fill in the blank 6	$fill in the blank 7
3. Spurlock and Wilson are to receive a salary allowance of $38,000 and $26,000, respectively. The remaining net income is to be divided equally.	$fill in the blank 8	$fill in the blank 9	$fill in the blank 10
4. Each partner is to receive 10% interest on their original investment. Spurlock and Wilson are to receive a salary allowance of $38,000 and $26,000, respectively. The remaining net income is to be divided as follows: Spurlock, 75% and Wilson, 25%.