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check please Topic: Allocation of partnership profits or losses Reading: Pages 515 to 51C...

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Topic: Allocation of partnership profits or losses Reading: Pages 515 to 51C Learning Objectives: (1). Allocate profits or losses among partners (ii). Journalize profit allocation Example: Anna, Ben, and Catherine established a partnership several years ago. Their partnership agreement calls for profits and losses to be shared as follows: Anna and Ben are to receive monthly salary allowances of $5,000 and $7,000, respectively. Each partner is to receive a 10% interest allowance on their beginning capital balances, and any remaining balance to be shared equally. For the current period, the beginning capital balances were $100,000, $200,000, and $120,000 for Anna, Ben, and Catherine, respectively. Net income for the current year amounts to $220,000. REQUIRED: Complete the table below to show how the allocation of net income among the three partners. ANNA BEN CATHERINE TOTAL BALANCE Net Income Salary Allowances GO000 S4000 0 IGH OCO JAHOCO Interest Allowances 10000 dOCCO ILOCO H2O00 186000 Share of Balance 69 COC 62OOC 6LOCO Total Allocation 10LOCO 166CCA 74000

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