Tom and Brady formed a partnership with capital contributions of $$200,000$ ?and $$175,000,$ ?respectively. Their

partnership agreement called for Tom to receive a $$70,000$ ?annual salary allowance and Brady to receive a

$$60,000$ ?annual salary allowance. They also agreed to allow each partner a share of income equal to $10\%$ ?of their

initial capital investments. The remaining income or loss is to be divided equally. The net income for the current

year is $$200,000.$

A$.$ ?What are Tom's and Brady's respective shares?

B$.$ ?What is the journal entry required to distribute the partner$’$s share of income?

= PROBLEM 1 SOLUTION Tom & Brady Partnership Income Distribution Tom Brady Total ENTRY DR CR