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Zheng invested $152,000 and Murray invested $252,000 in a partnership. They agreed to share income and loss by allowing a $73,000 per year salary allowance
Zheng invested $152,000 and Murray invested $252,000 in a partnership. They agreed to share income and loss by allowing a $73,000 per year salary allowance to Zheng and a $53,000 per year salary allowance to Murray, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the remaining balance to be shared equally. Assuming net income for the current year is $131,000.
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To allocate the net income in accordance with the partnership agreement the journal entry would be a...
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Fundamental Accounting Principles
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
20th Edition
1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870
