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solve for B but don't forget the totals at the end! TY will upvote once done! At the end of its first year of operations
solve for B but don't forget the totals at the end! TY will upvote once done!
At the end of its first year of operations on December 31, 2022, Blossom Company's accounts show the following. Partner Art Niensted Greg Bolen Krista Sayler Drawings Capital $18,400 $38,400 11.200 24,000 20,000 8,000 The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2022 has not been closed to the partners' capital accounts. Journalize the entry to record the division of net income for the year 2022 under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. 2. 3. 1. No. Account Titles and Explanation Income Summary 2. Net income is $24,000. Income is shared 6:3:1. Net income is $32,000. Niensted and Bolen are given salary allowances of $12,000 and $8,000, respectively. The remainder is shared equally. 3. Net income is $15,200. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $12,000 salary allowance. The remainder is shared equally. A. Niensted, Capital G.Bolen, Capital K. Sayler, Capital Income Summary A. Niensted, Capital G. Bolen, Capital K. Sayler, Capital Income Summary A. Niensted, Capital G. Bolen, Capital K. Sayler, Capital Debit 24000 32000 15200 Credit [****** 14400 7200 2400 16000 12000 4000 14160 720 320 (b) Prepare a schedule showing the division of net income under assumption (3) above. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g.-15,000 or parenthesis e.g. (15,000).) Salary allowance Interest allowance on capital Total salaries and interest Remaining excess/ deficiency Total division of net income $ Art Niensted 12000 DIVISION OF NET INCOME Greg Bolen LU Krista Sayler [1] $ $ TotStep by Step Solution
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