QUESTION $($i$)$

Nathan, George, and Bill have formed a partnership and the partnership agreement states that Nathan will receive $40\%$ of the profits and George and Bill will share the remainder equally. During the current year, the partnership earns $$120,000.$

What is the closing entry to record the allocation of partnership income?

ANSWER

$\backslash$table$[[$Date$,$Accounts,Debit,Credit$],[,$Nathan, Capital,$40,000,],[$George$,$ Capital,$40,000,],[$Bill$,$ Capital,$40,000,],[$Income$,,120,000],[$Summary$,,]]$

$\backslash$table$[[$Date$,$Accounts,Debit,Credit$],[,$Nathan, Capital,$48,000,],[$George$,$ Capital,$36,000,],[$Bill$,$ Capital,$36,000,],[$Income$,,120,000],[$Summary$,,]]$

$\backslash$table$[[$Date$,$Accounts,Debit,Credit$],[,$Income Summary,$120,000,],[\backslash$table$[[$Nathan$,],[$Capital$],[$George$,],[$Capital$],[$Bill$,$ Capital$]],,48,000],[,36,000,]]$