Help with part C.
Problem 12-02A a-c (Part Level Submission) (Video) At the end of its first year of operations on December 31, 2020, Blossom Company's accounts show the following. Partner Art Niensted Greg Bolen Krista Sayler Drawings $22,900 13,700 11,400 Capital $46,400 36,000 24,000 The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2020 has not been closed to the partners' capital accounts. To record the division of net income for the year 2020 under each of the following independent assumptions. 1. Net income is $28,300. Income is shared 6:3:1. 2. Net income is $41,700. Niensted and Bolen are given salary allowances of $15,500 and $10,600, respectively. The remainder is shared equally. 3. Net income is $18,700. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $14,360 salary allowance. The remainder is shared equally. (a) Your answer is correct. Prepare a schedule showing the division of net income under assumption (3) above. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).) DIVISION OF NET INCOME Art Niensted Greg Bolen Krista Sayler Total Salary allowance 14,360 14,360 Interest allowance on capital 3,600 2,400 T 10,640 Total salaries and interest 19,000 3,600 2,400 T 25,000 Remaining excess/ deficiency (2,100)| (2,100) (2,100) T (6,300) Total division of net income 16,900 1,500 300 18,700 Click if you would like to Show Work for this question: Open Show Work (b) Your answer is correct. Journalize the entry to record the division of net income for the year 2020 under each of the above independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. Income Summary T A. Niensted, Capital 16,980 T G. Bolen, Capital 8,490 T K. Sayler, Capital 2,830 2. Income Summary A. Niensted, Capital 20,700 T T 15,800 G. Bolen, Capital K. Sayler, Capital 1 5,200 3. T Income Summary T A. Niensted, Capital 16,900 T G. Bolen, Capital IN 1,500 T K. Sayler, Capital 300 Click if you would like to Show Work for this question: Open Show Work (c) Your answer is partially correct. Try again. Prepare a partners' capital statement for the year under assumption (3) above. (List items that increase partners capital first.) BLOSSOM COMPANY Partners' Capital Statement For the Year Ended December 31, 2020 Art Niensted Greg Bolen Krista Sayler Total | Capital, January 1 | T 46,400 T 36,000 24,000 J 106,400 x TL 22,900 13,700 13,700 11,400 48,00 Drawings 23,500 22,3001 12,600 58,400 Add 19,000 3,600 2,400 25,000 Total Revenues 42,500 25,900 25,000 Capital, December 31 - 15,000 15,000 83,400 83,400 Click i volweud Latesbe VALL for this auction on Chew World
