Question: 1.Allocation of income for 2009,2010

2.prepare the closing entries for 2010

PROBLEM 15-2 Income Allocation and Capital Statements 106 Dave, Brian, and Paul are partners in a retail appliance store. The partnership was formed January 1, 2008, with each partner investing $45,000. They agreed that profits and losses are to be shared as follows: 1. Divided in the ratio of 40:30:50het income is not sufficient to cover salaries, bonus, and interest 2. A net loss is to be allocated equally 3. Net income is to be allocated as follows net income is in excess of salaries, bonus, and interest. (a) Monthly salary allowances are: Dave $3,500 * 12 $ 42000 Brian 2,500 * 12 - 3000 Paul 1,500 12 = 18.000 g good (b) Brian is to receive a bonus of 8% of net income before suburacung Salaries and interest but after subtracting the bonus. (c) Interest of 10% is allocated based on the beginning-of-year capital balances. (d) Any remainder is to be allocated equally. Operating performance and other capital transactions were as follows. Capital Transactions Dave Brian Paul Nel Income Year-End (Loss) Investment Withdrawals Investment Withdrawals Investment Withdrawals 12/31/08 $(5,400) $15,000 $17.000 $15,000 $7.000 $6,000 $3,200 12/31/09 27,000 17,000 7,000 6,000 3,200 12/31/10 120,000 19,000 -0 9,000 6,000 3,200