Question
On Jan 11,2011 Olivia and David organize as a partnership called the Landing Zone. Olivia's initial net investment is $ 30,000 and David's initial investment
On Jan 11,2011 Olivia and David organize as a partnership called the Landing Zone. Olivia's initial net investment is $ 30,000 and David's initial investment is S10,000. The partnership's net income for the year ended December 31, 2011 is $70,000. Allocate income and prepare the journal entry to close the income summary account. Provided-
a. Annual salary allowances of $40,000 to Olivia and $ 25,000 to David b. Interest Allowances equal to 10% of each partner's beginning of the year
capital balance
c. Any remaining balance of income or loss to be shared 3:1
Book Value Depreciation Expense 3. On Jan11.2011 Olivia and David organize as a partnership called the Landing Zone. Olivia's initial net investment is $ 30,000 and David's initial investment is $10,000. The partnership's net income for the year ended December 31, 2011 is $70,000.Allocate income and prepare the journal entry to close the income summary account. Provided- a. Annual salary allowances of $40,000 to Olivia and $ 25,000 to David b. Interest Allowances equal to 10% of each partner's beginning -of- the year capital balance c. Any remaining balance of income or loss to be shared 3:1 2x3=6 1) cStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started