The Scott Stewart and Rick Smith Partnership earned a net income of $90,000 for the current year.Beginning capital balances were $70,000 for Stewart and $140,000 for Smith.Prepare the closing entries to transfer net income to the partners' capital accounts based on the following independent net income agreements.
a_No mention of net income agreement.
b_Interest on beginning capital balances of 12%,balance divided in a ratio of 3:2,respectively.
c_Interest on beginning capital balances of 10%,secondly $45,000 to Stewart and $50,000 to Smith based on service and the balance divided equally.

Question

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The Answer of The Scott Stewart and Rick Smith Partnership earned a net income of $90,000 for the current year.Beginning capital balances were $70,000 for Stewart and $140,000 for Smith.Prepare the closing entries to transfer net income to the partners' capital accounts based on the following independent net income agreements.
a_No mention of net income agreement.
b_Interest on beginning capital balances of 12%,balance divided in a ratio of 3:2,respectively.
c_Interest on beginning capital balances of 10%,secondly $45,000 to Stewart and $50,000 to Smith based on service and the balance divided equally.

The Scott Stewart and Rick Smith Partnership Earned a Net