Madison and Hamilton are partners who share profits and losses equally. The partnership agreement provides that Madison will be paid an annual salary of $40,000 and Hamilton will be paid an annual salary of $30,000. The salaries were paid to the partners during 2013 and were charged to the partners' drawing accounts. The Income Summary account has a credit balance of $80,000 after revenue and expense accounts are closed at the end of the year.
1. What amount of net income or loss will be allocated to Madison?
2. What amount of net income or loss will be allocated to Hamilton?

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The Answer of Madison and Hamilton are partners who share profits and losses equally. The partnership agreement provides that Madison will be paid an annual salary of $40,000 and Hamilton will be paid an annual salary of $30,000. The salaries were paid to the partners during 2013 and were charged to the partners' drawing accounts. The Income Summary account has a credit balance of $80,000 after revenue and expense accounts are closed at the end of the year.
1. What amount of net income or loss will be allocated to Madison?
2. What amount of net income or loss will be allocated to Hamilton?

Madison and Hamilton Are Partners Who Share Profits and Losses