Question
Nadine Hoop, Laura Hirtz and George Smar perform in a band operating as a partnership. According to the partnership agreement, Nadine receives a salary of
Nadine Hoop, Laura Hirtz and George Smar perform in a band operating as a partnership. According to the partnership agreement, Nadine receives a salary of $19,000, Laura receives a salary of $26,000, and George a salary of $28,000. They are also to receive nominal interest of 5% on the capital at the end of the preceding year (capital balances are Nadine - $900, Laura - $8,000, George - $20,000). The remainder is divided equally. During the year partners withdrew $22,000 each as an advance to their share of partnership earnings. The band made $99,345 after paying all other expenses.
Prepare a table showing the income distribution for the year.
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