E124 fair value of the equipment is 23500 oubiul accounts sh

E12-4

fair value of the equipment is $23,500. oubiul accounts should be $3,000 for Instructions Journalize Vopat\'s admission to the firm of Vopat and Sigma. E12-4 McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, Prepare so respectively. The partnership income-sharing agreement provides for (1) annual salaries dismbuti of $22,000 for McGill and $13,000 for Smyth, (2) interest at 10% on beginning capital and closn balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. (LO 2) Instructions (a) Prepare a schedule showing the distribution of net income, assuming net income is XLs (1) $50,000 and (2) $36,000. (b) Journalize the allocation of net income in each of the situations above. E12-5 Coburn (beginning capital, $60,000) and Webb (beginning capital $90,000) are Prepare jo partners. During 2017, the partnership earned net income of $80,000, and Coburn made record alle drawings of $18,000 while Webb made drawings of $24,000. income (LO 2)

Solution

1.

Table showing the distribution of income between partners.

.

2.

3.

Similarily the J/E will be passed for the second case i.e for profit 36000, only the amount will be different.

table showing the distribution of net profit.

particulars	McGill	Smyth	Total
Salaries (A)	22000	13000	35000
Remaining profit (36000-35000)			1000
Interest on capital (in the capital ratio as income is less than total interest on capital). (5:4) (B)	555.5	444.5
Amount credited to partners\' capital (A+B)	22555.5	13444.4	36000