raman and simran created a partnership to produce a new product that would help keep...
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raman and simran created a partnership to produce a new product that would help keep pets dry in the rainy season. Both of them invested $75,000 initially into the partnership and withdrew $10,000 during the first year raman had experience in this area and had the product ideas. simran knew how to set up and market the product. The partnership agreement stated that the net income would be split as follows: 1. The first $100,000 would be split in a 4:1 ratio (3 parts to Smith and 1 parts to Newman) as a service allocation. 2. The remainder would be split evenly. In the first year of business, the partnership had a net loss of $45,000. In the second year of business, the partnership had a profit of $85,000. The partners withdrew another $10,000 each in the 2nd year. 1. What are the Journal Entries for distribution of income in Year 1? 2. What are the Journal Entries for the withdrawals in Year 1? 3. What were the closing amounts in the owners' capital accounts at the end of the 2nd year? fuour work to get part
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