Question
Problem 12-2A (Part Level Submission) At the end of its first year of operations on December 31, 2017, NBS Companys accounts show the following. Partner-
Problem 12-2A (Part Level Submission) At the end of its first year of operations on December 31, 2017, NBS Companys accounts show the following.
Partner- Drawings- Capital Art Niensted- $23,000- $48,000 Greg Bolen- $14,000- $30,000 Krista Sayler- $10,000- $25,000
(a) Journalize the entry to record the division of net income for the year 2017 under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(1) |
| Net income is $30,000. Income is shared 6 : 3 : 1. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) |
| Net income is $40,000. Niensted and Bolen are given salary allowances of $15,000 and $10,000, respectively. The remainder is shared equally. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) |
| Net income is $19,000. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $15,000 salary allowance. The remainder is shared equally. 2. Problem 12-3A (Part Level Submission) The partners in Crawford Company decide to liquidate the firm when the balance sheet shows the following.
The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence.
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