Question 2 F:12

Patchell and Walter have formed a partnership. During their first year of operations, the partnership earned $120,000. Their-profit-and-loss-sharing agreement states that, first, each partner will receive 20% of their capital balances. The second level is based on services, with $5,000 to Patchell and $10,000 to Walter. The remainder then will be shared 1:4 between Patchell and Walter, respectively. Read the requirements. Requirement 1. Calculate the amount of income each partner will receive under their profit-and-loss-sharing agreement assuming Patchell's capital balance is $95,000 and Walter's capital balance is $95,000. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate column.) Requirements 1. Calculate the amount of income each partner will receive under their profit-and-loss-sharing agreement assuming Patchell's capital balance is $95,000 and Walter's capital balance is $95,000. 2. Journalize the entry to close the Income Summary account for the year