Situation F Partnership Distribution Net Income

A partnership agreement between Carol (40%) and Rivas (60%) provides for:

1. Salaries allowances for $24,000 for Carol and $34,000 for Rivas.
2. Interest allowances for 10% of beginning capital.
3. Remainder income or loss is dividend 40% for Carol and 60% for Rivas.

The beginning capital for Carol, $64,000 and Rivas, $46,000. Net Income for 2021: $110,000.

Drawing for Carol during the year > $10,000. Investment for Carol during the year > $29,000

Drawing for Rivas during the year > $15,000. Investment for Rivas during the year > $39,000

Instructions: Complete the schedule to distribution the net income for 2021 and complete the statement of capital for the Carol and Rivas Partnership.

Carol and Rivas Partnership
Schedule to Distribution Net Income
For the year ended December 31, 2021
Data	Carol - 40%	Rivas - 60%	Total
Net Income			$110,000

Carol and Rivas Partnership
Statement of Capital
For the year ended December 31, 2021
	Carol - 40%	Rivas - 60%	Total
Beginning Capital	$ 64,000	$ 46,000
Plus: Investment
Net Income
Contribution Capital
Less: Drawing
Ending Capital