Question
Raft and Barakat organized their partnership on 1/1/2020. The following entries were made into their capital accounts during 2020 Raft Debit Credit Balance 1/1 55,000
Raft and Barakat organized their partnership on 1/1/2020. The following entries were made into their capital accounts during 2020
Raft | |||
| Debit | Credit | Balance |
1/1 |
| 55,000 | 55,000 |
1/6 |
| 15,000 | 70,000 |
1/10 |
| 25,000 | 95,000 |
12/1 | 15,000 |
| 80,000 |
Barakat | |||
1/1 |
| 45,000 | 45,000 |
1/3 |
| 10,000 | 55,000 |
9/1 | 15,000 |
| 40,000 |
1/11 | 10,000 |
| 30,000 |
1/12 |
| 40,000 | 70,000 |
If partnership profits for the year equaled $66,000, indicate the allocations between the partners under the following profit-sharing allocation conditions and journalize the required entries:
1) a salary of $15,000 is allocated to Barakat, a $10,000 salary is allocated to Raft.
2) 12% interest on weighted capital is allocated to both partners.
3) A bonus of 20% of partnership profits after (bonus, salary and interest) bonus is credited to Raft.
4) the remainder 30%Raft and70% Barakat
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started