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FULL SCREEN PRINTER VERSION BACK NET Question 21 After closing the revenue and expense accounts, the profit for the year anded December 31, 2021 of
FULL SCREEN PRINTER VERSION BACK NET Question 21 After closing the revenue and expense accounts, the profit for the year anded December 31, 2021 of the Met & Ryan partnership is $26,000. The partnership agreement specifies that profits and losses will be shared using the following formula 1. Allocate profit by a 5% Interest allowance on the partners' beginning capital balances 2. Allocate salary allowances of $18,590 to Mitt and $13,290 to Ryan. 3. Remaining profit (loss) is to be shared on a ratio of 8:5. At the beginning of the year, Mitt's capital account had a balance of $31,100 and Ryan's capital account had a balance of $33,300. Mitt withdrew $1,040 cash per month while Ryan withdrew $1,249 per month from the partnership. During the year, Mitt made an additional Investment of $5,200 cash into the partnership (a) Prepare a schedule to show how the profit or loss will be allocated to the two partners. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) MITT & RYAN Division of Profit Year Ended December 31, 2021 Ryan Total Mitt Profit Interest allowance Mitt Ryan Total in Wysons
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