The profit and loss sharing agreement for the Mason,Nell,and Odell partnership provides for a $15,000 salary allowance to Nell.Residual profits and losses are allocated 5:3:2 to Mason,Nell,and Odell,respectively.In 2013,the partnership recorded $120,000 of net income that was properly allocated to the partners' capital accounts.On January 25,2014,after the books were closed for 2013,Mason discovered that office equipment,purchased for $12,000 on December 29,2013,was recorded as office expense by the company bookkeeper.
Required:
Prepare the necessary correcting entry(s)for the partnership.

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The Answer of The profit and loss sharing agreement for the Mason,Nell,and Odell partnership provides for a $15,000 salary allowance to Nell.Residual profits and losses are allocated 5:3:2 to Mason,Nell,and Odell,respectively.In 2013,the partnership recorded $120,000 of net income that was properly allocated to the partners' capital accounts.On January 25,2014,after the books were closed for 2013,Mason discovered that office equipment,purchased for $12,000 on December 29,2013,was recorded as office expense by the company bookkeeper.
Required:
Prepare the necessary correcting entry(s)for the partnership.

The Profit and Loss Sharing Agreement for the Mason,Nell,and Odell