The adjusted trial balance of the Melton and Yount Partnership for the year ended December 31, 2010, appears below:
The partnership agreement stipulates that a division of partnership net income or net loss is to be made as follows:
1. A salary allowance of $12,000 to Melton and $23,000 to Yount.
2. The remainder is to be divided equally.
Instructions
(a) Prepare a schedule which shows the division of net income to each partner.
(b) Prepare the closing entries for the division of net income and for the drawing accounts at December 31, 2010.

Question

The adjusted trial balance of the Melton and Yount Partnership for the year ended December 31, 2010, appears below:  
The partnership agreement stipulates that a division of partnership net income or net loss is to be made as follows:
1. A salary allowance of $12,000 to Melton and $23,000 to Yount.
2. The remainder is to be divided equally.
Instructions
(a) Prepare a schedule which shows the division of net income to each partner.
(b) Prepare the closing entries for the division of net income and for the drawing accounts at December 31, 2010.

Quizplus · Accepted Answer

The Answer of The adjusted trial balance of the Melton and Yount Partnership for the year ended December 31, 2010, appears below:  
The partnership agreement stipulates that a division of partnership net income or net loss is to be made as follows:
1. A salary allowance of $12,000 to Melton and $23,000 to Yount.
2. The remainder is to be divided equally.
Instructions
(a) Prepare a schedule which shows the division of net income to each partner.
(b) Prepare the closing entries for the division of net income and for the drawing accounts at December 31, 2010.

The Adjusted Trial Balance of the Melton and Yount Partnership