Question
Exercise 3-2Bernal, Capitaldr cr 10/31 - 60,000 1/1- 360,000 5/31 - 100,000Burgos, Capitaldr cr6/30 - 80,000 1/1- 440,000 10/31- 140,000 Instructions: Prepare the entry to
Exercise 3-2Bernal, Capitaldr cr 10/31 - 60,000 1/1- 360,000 5/31 - 100,000Burgos, Capitaldr cr6/30 - 80,000 1/1- 440,000 10/31- 140,000 Instructions: Prepare the entry to record the allocation of the partnership profit individual capital accounts under each of the following assumptions:1. Each partner receives 8% interest on the beginning of the year capital balances and the remainder is divided between Bernal and Burgos in the ratio of 3:1, respectively. 2. Bernal and Burgos are given annual salaries of 70,000 and 130,000 respectively, 12% interest in the end of year capital balances, and the remainder is divided equally. 3. Bernal and Burgos are given salaries 45,000 and 85,000 respectively, 12% interest on average capital balances and remainders 4. Bernal and Burgos salaries of 50,000 and 100,000 respectively. 10% interest on average capital balances, and the remainder divided 40% to Bernal and 60% to Burgos. 5. Each partner receives 8% interest on beginning of the year capital balances and a salary of 50,000, Bernal receives a bonus of 10% of profit after deducting interest and salaries, and the remainder is divided in the ratio of 2:3.
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