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  3. e 19-3b (lo4) 1. allocation of net income: nol

E 19-3B (LO4) 1. Allocation of net income: Nolan, $33,000 ...

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Accounting

E 19-3B (LO4)
1. Allocation of net income:
Nolan, $33,000
2 Capital: Nolan, $78,000
PARTIAL FINANCIAL STATEMENTS Randy Nolan and Jill Brenton formed a
partnership on May 1,20-1. Nolan contributed $50,000 and Brenton contributed
$25,000. During the year, Nolan contributed an additional $10,000. The partnership
agreement states that Nolan is to receive $15,000 and Brenton is to receive $50,000
as a salary allowance. Any remaining net income is to be divided as follows: Nolan,
40% and Brenton, 60%. The partnership earned net income of $110,000 for the fis-
cal year ending April 30,20-2. During the first year of operation, Nolan and Brenton
withdrew $15,000 and $40,000, respectively.
Prepare the lower portion of the income statement showing the allocation of net
income between Nolan and Brenton for the fiscal year ended April 30,20-2.
Prepare a statement of partners' equity, showing each individual partner's
equity for the fiscal year ended April 30,20-2.
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