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Zheng invested $140,000 and Murray invested $240,000 in a partnership. They agreed to share incomes and losses by allowing a $70,000 per year salary allowance

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Zheng invested $140,000 and Murray invested $240,000 in a partnership. They agreed to share incomes and losses by allowing a $70,000 per year salary allowance to Zheng and a $50,000 per year salary allowance to Murray, plus an interest allowance on the partners' beginning-year capital investments at 10 % , with the balance to be shared equally. Assuming net income for the current year is $125,000, the journal entry to allocate net income is: Multiple Choice Debit Zheng, Capital, $67,500, Debit Murray, Capital, $57,500; Credit Income Summary, $125,000 Debit Income Summary, $125,000; Credit Zheng, Capital, $44,500, Credit Murray, Capltal, $80,500. Debit Income Summary, $125,000; Credit Zheng. Capital, $62,500, Credit Murray, Capital, $62,500 Debit Income Summary, $125,000, Credit Zheng, Capital, $43,000, Credit Murray, Capital, $82,000. Debit Income Summary, $125,000: Credit Zheng. Capital, $67,500, Credit Murray, Capital, $57500. Saved Help Save & Exit Hewlett and Martin are partners. Hewlett's capital balance in the partnership is $61,000, and Martin's capital balance $58,000. Hewlett and Martin have agreed to share equally in income or loss. Hewlett and Martin agree to accept Black with a 25% interest. Black will invest $32,000 in the partnership. The bonus that is granted to Black equals: Multiple Choice $5,750 $2,875 $3,146 $6,292 $0, because Black must actually grant a bonus to Hewlett and Martin Farmer and Taylor formed a partnership with capital contributions of $250,000 and $300,000, respectively. Their partnership agreement calls for Farmer to receive a $90,000 per year salary. The remaining income or loss is to be divided equally. Assuming net loss for the current year is $25,000, the journal entry to allocate the net loss is: Multiple Choice Debit Taylor, Capital, $57,500; Credit Income Summary, $25,000, Credit Farmer, Capital, $32,500. Debit Income Summary, $25,000, Debit Farmer, Capital, $32,500; Credit Taylor, Capital, $57,500. Debit Income Summary, $25,000, Credit Taylor, Capital, $12,500; Credit Farmer, Capital, $12,500 Debit Income Summary, $25,000; DebitTaylor, Capital, $32,500; Credit Taylor, Capital, $57,500 Debit Income Summary. $25,000, Credit Farmer, Capital, $12.500; Credit Taylor, Capital512.500

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