1 Annual salary allowance to Dane of 95700 2 Interest of 6 o

1. Annual salary allowance to Dane of $95,700 2. Interest of 6% on each partner\'s capital balance on January 1. 3. Any remaining net income divided to Jack and Dane, 1:2.

Solution

Answer 1:-

Net income for the year = $165000

Less :- Salary allowance to Dane = $95700

Less :- Interest on Jack\'s capital = $66560 x 6%= $3994

Less :- Interest on Dane\'s capital =$112600 x 6% = $6756

Net income available for distribution on Jack and Dane = $58550

Amount distributed to Jack = 58550 x 1/3 = $19517

Amount distributed to Dane = 58550 x 2/3 = $39033

Answer 2 :-

Journal entry for Equipment revaluation:-

Journal entry for admission of Demarco Lee:-

Answer 3:-

Capital balance of Blair after adjustments = $51000

Amount contributed bi Vann ness = $28000

Therefore, total capital = $79000

Now, amount of Bonus = 79000 x 35%

= 27650

Amount of bonus = $28000- $27650

= $350

Equipment A/c	42000
To Camden capital		14000
To sayler capital		28000