Khalid, Dina, and Heidi are partners with capital balances of $100,000, $80,000, and<\/p>
$40,000, respectively. The partners agreed to share profits and losses as follows:<\/p>
Salary allowances of $5,000 to Khalid, $10,000 to Dina, and $15,000 to Heidi.<\/p>
Interest allowances of 10% on beginning-of-year capital balances<\/p>
Balance to be divided equally.<\/p>
a. If net income for the year is $70,000, calculate each partner's share and prepare<\/p>
the appropriate journal entry to close the Income Summary to the capital<\/p>
accounts.<\/p>
b. If there is a net income for the year of $25,000, calculate each partner's share and<\/p>
prepare the appropriate journal entry to close the Income Summary to the capital<\/p>
accounts.<\/p>", "transcribed_text": "", "related_book": { "title": "Income Tax Fundamentals 2013", "isbn": "1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516", "edition": "31st Edition", "authors": "Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1124.jpg", "uri": "\/textbooks\/income-tax-fundamentals-2013-31st-edition-9781285586618", "see_more_uri": "" }, "free_related_book": { "isbn": "194169117X", "uri": "\/textbooks\/100-instructive-calculus-based-physics-examples-the-laws-of-motion-1st-edition-978-1941691175-290787", "name": "100 Instructive Calculus Based Physics Examples The Laws Of Motion", "edition": "1st Edition" }, "question_posted": "2024-06-28 07:50:48", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-13", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/dunnsmore-company-reported-cost-of-goods-sold-of-318450-on", "description": "Dunnsmore Company reported cost of goods sold of $318,450 on its 2014 income statement. 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