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Veda Clark and Gordon Lewi have a partnership agreement with the following provisions for sharing profit or loss: 1. A salary allowance of $34,600 to
Veda Clark and Gordon Lewi have a partnership agreement with the following provisions for sharing profit or loss: 1. A salary allowance of $34,600 to Clark and $44,500 to Lewi 2. An interest allowance of 5% on capital balances at the beginning of the year 3. The remainder to be divided between Clark and Lewi on a 2:3 basis The capital balances on January 1, 2024, for Clark and Lewi were $91,800 and $113,100, respectively. For the year ended December 31,2024 , the Clark Lewi Partnership had sales of $380,800; cost of goods sold of $280,000; operating expenses of $145,600; V. Clark drawings of $26,820; and G. Lewi drawings of $32,256. Prepare an income statement for Clark Lewi Partnership for the year. Prepare a schedule to show how the loss will be allocated to the two partners. (Enter negative amounts using either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) Total Deficiency remaining for allocation Fixed ratio V. Clark G. Lewi Total Loss remaining for allocation Loss allocated to the partners
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