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The partnership agreement of Angela and Dawn has the following provisions: 1. The partners are to earn 10 percent on the average capital. 2. Angela
The partnership agreement of Angela and Dawn has the following provisions: 1. The partners are to earn 10 percent on the average capital. 2. Angela and Dawn are to earn salaries of $28,000 and $11,000, respectively. 3. Any remaining income or loss is to be divided between Angela and Dawn using a 70:30 ratio. Angela's average capital is $70,000 and Dawn's is $51,000. Required: (Show all your calculations to earn credit) Prepare an income distribution schedule assuming the income of the partnership is (a) $99,000
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