Armstrong, Mackey, and Bell have capital balances of $24,000, $36,000, and $60,000, respectively. The partners...
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Armstrong, Mackey, and Bell have capital balances of $24,000, $36,000, and $60,000, respectively. The partners share profits and losses as follows: a. The first $30,000 is divided based on the partners' capital balances. b. The next $30,000 is based on service, shared equally by Armstrong and Bell. Mackey does not receive a salary allowance. C. The remainder is divided equally. Read the requirements. Requirement 1. Compute each partner's share of the $75,000 net income for the year. (Complete all answer boxes. For amounts that are $0, make sure to enter "O" in the appropriate column.) Armstrong Mackey Bell Total Net income (loss) Capital allocation: Armstrong Mackey Bell Salary allowance: Armstrong Mackey Bell llocation Total salary and capital allocation Net income (loss) remaining for allocation T Remainder shared equally: Armstrong Mackey Bell Total allocation Net income (loss) remaining for allocation Net income (loss) allocated to the partners - Requirement 2. Journalize the closing entry to allocate net income for the year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit
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