MID TERM ACCOUNTING 13 ,PARTNERSHIP ACCOUNTING

5. Owen Dillard and Ryan Keller are looking to form a new partnership Dillard contributes the following Equipment, $875.00, Building, $6,790 Notes Payable, S2,100.00 and Cash $125.00, and Accounts Payable, $250.00.

Prepare the journal ( entry to record the contributions, which occurred on August 15, 2017.

6. Ashley f. and Charles K's Partnership earned $300,000.00 of net income for 2015. The partnership agreement states that each partner must receive a monthly salary of $62,500.00 for Ashley K. and $69,000.00 for Charles K. Allowances to be provided annually for each Partner at $2,000 per year. Remaining balance will be divided according to the ratio of their capital Investments at the beginning of the year which corresponds to as follows:

Ashley F: $25,000.00. Charles K. 75,000.00

Prepare the summary of the division of profits and the journal entry to record the division of net income.