Question 1

R. Huma and W. How have capital balances on July 1, 2016, of $62,000 and $56,000, respectively. The partnership profit-sharing agreement specifies:

1.		salary allowances of $29,700 for Huma and $20,300 for How,
2.		interest at 6% on beginning capital balances, and
3.		for the remaining profit or loss to be shared 60% by Huma and 40% by How.

Prepare a schedule showing the division of profit for the year ended June 30, 2017. (Round answers to 0 decimal places, e.g. 5,276. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) (1) Assuming profit is $70,700.

(2) Assuming profit is $55,700.

Prepare a schedule showing the division of profit for the year ended June 30, 2017

Journalize the allocation of profit in each of the situations in (a).