Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. dividing partnership net income required: steve ki

Dividing Partnership Net Income Required: Steve King and Chelsy Stevens formed a partnership, dividing income as...

Free

70.2K

Verified Solution

Question

Accounting

Dividing Partnership Net Income Required: Steve King and ChelsyStevens formed a partnership, dividing income as follows: Annualsalary allowance to King of $101,750. Interest of 7% on eachpartner's capital balance on January 1. Any remaining net incomedivided to King and Stevens, 1:2. King and Stevens had $77,600 and$90,040, respectively, in their January 1 capital balances. Netincome for the year was $185,000. How much is distributed to Kingand Stevens? Note: Compute partnership share to two decimal places.Round final answers to the nearest whole dollar.

King: $

Stevens: $

Answer & Explanation Solved by verified expert
4.0 Ratings (673 Votes)

  • Workings

Steve King

Chelsy Stevens

NET INCOME

Net Income Distributed

Undistributed balance

Net Income Balance

$        185,000.00

Salary Allowance

$          101,750.00

$                          -  

$        101,750.00

$          83,250.00

Interest on Capital

$              5,432.00

$             6,302.80

$           11,734.80

$          71,515.20

Remaining Net Income

$            23,838.40

$           47,676.80

$           71,515.20

$                          -  

Total Distribution

$          131,020.40

$           53,979.60

  • Requirements

>King = $ 131,020

>Stevens = $ 59,980
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Primates tend to Mark all that apply have larger brains for their body size than...

Geometry
1.2K views

Find each angle in the rhombus m 1 m 2 m 3 104

Geometry
1.2K views

1 Which 3D figure would this a Cube b Pyramid c Triangular Prism ular Prism

Calculus
1.2K views

Let f x 2 5 4 3 2 1 4 The graph of f is...

Algebra
1.2K views

A X 4 15 3x 2 3 2x 2 3 x 413 CX 8115 Dx...

Accounting
1.2K views

20.Which of the following would not be included in inventory costs? a. Shelving to hold...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.]...

Accounting
1.2K views

A special revenue fund for flood control has these transactions: Payroll, $400,000; equipment purchases, $800,000;...

Accounting
1.2K views

What is the name of a lawsuit brought by one or more individuals on behalf...

Accounting
1.2K views

A bottom-up approach to budgeting involves substantial input from lower-level managers.Group of answer choices True...

Accounting
1.2K views

Using the data in the accompanying table, calculate the value of autonomous consumption. (1...

Accounting
1.2K views

On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be...