Kellan,Willa,and Sami are partners with capital balances of $90,000,$70,000,and $50,000,respectively.The partners agreed to share profits and losses as follows:
Salary allowances of $5,000 to Kellan,$10,000 to Willa,and $15,000 to Sami.
Interest allowances of 10% on beginning-of-year capital balances Balance to be divided equally.
If net income for the year is $170,000,calculate each partner's share and prepare the appropriate journal entry to close the Income Summary to the capital accounts.

Question

Quizplus · Accepted Answer

The Answer of Kellan,Willa,and Sami are partners with capital balances of $90,000,$70,000,and $50,000,respectively.The partners agreed to share profits and losses as follows:
Salary allowances of $5,000 to Kellan,$10,000 to Willa,and $15,000 to Sami.
Interest allowances of 10% on beginning-of-year capital balances Balance to be divided equally.
If net income for the year is $170,000,calculate each partner's share and prepare the appropriate journal entry to close the Income Summary to the capital accounts.

Kellan,Willa,and Sami Are Partners with Capital Balances of $90,000,$70,000,and $50,000,respectively