99. Paco and Kate invested $99,000 and $126,000, respectively, in a partnership they began one year ago. Assuming the partnership earned $120,000 during the current year, compute the share of the net income each partner should receive under each of these independent assumptions.
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Paco’s Share
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Kate’s Share
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1.
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The partnership contract specifies salary allowances of $45,000 to Paco and $60,000 to Kate, and any balance shared equally.
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$
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$
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2.
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The partnership contract specifies salary allowances of $45,000 to Paco and $60,000 to Kate with interest allowance of 10% on the partners’ beginning year capital balance and any remaining balance shared equally.
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$___________________
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$__________________
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100. Holden, Phillips, and Rogers are partners with beginning-year capital balances of $120,000, $60,000, and $60,000, respectively. Partnership net income for the year is $84,000. Make the necessary journal entry to close Income Summary to the capital accounts if:
a. Partners agree to divide income based on their beginning-year capital balances.
b. Partners agree to divide income based on the ratio of 5:3:2 (Holden:Phillips:Rogers), respectively.
c. Partnership agreement is silent as to division of income and loss.
101. Khalid, Dina, and James are partners with beginning-year capital balances of $400,000, $320,000, and $160,000, respectively. The partners agreed to share income and loss as follows: salary of $30,000 to Khalid; $50,000 to Dina; and $55,000 to James and an interest allowance of 10% on beginning-of-year capital balances. Any remaining balance is to be divided equally. If partnership net income for the year is $190,000, determine each partner's share and make the appropriate journal entry to close the Income Summary to the capital accounts.
102. Marquis and Bose agree to accept Sherman into their partnership. Sherman will contribute $25,000 in cash. Prepare the journal entry to record this transaction.