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Please show work, Thank you! Use the following information for questions 1, and 2. Lugman and Idris share profits and losses equally. Luqman and Idris
Please show work, Thank you!
Use the following information for questions 1, and 2. Lugman and Idris share profits and losses equally. Luqman and Idris receive salary allowances of $30,000 and $40,000, respectively, and both partners receive 10% interest on their average capital balances. Lugman is entitled to a bonus of 5% after deduction of the bonus. Partners' drawings are not used in determining the average capital balances. Total net income for 2020 is $210,000. Lugman $100,000 18,000 Idris $120,000 18,000 January 1 capital balances Yearly drawings ($1,500 a month) Permanent withdrawals of capital: July 1 June 1 Additional investments of capital: August 1 November 1 _(12,000) (15,000) 40,000 50,000 1. What is the weighted average capital for Luqman and Idris in 2020? 2. What will be the final profit allocations for Luqman and Idris in 2020Step by Step Solution
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