Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. required information [the following information ap

Required Information [The following Information applies to the questions displayed below.] Mo, Lu, and Barb...

70.2K

Verified Solution

Question

Accounting

image

Required Information [The following Information applies to the questions displayed below.] Mo, Lu, and Barb formed the MLB Partnership by making Investments of $73,800,$287,000, and $459,200, respectively. They predict annual partnership net Income of $487,500 and are considering the following alternative plans of sharing Income and loss: (a) equally; (b) In the ratlo of their Initlal capital Investments; or (c) salary allowances of $82,800 to Mo, $62,100 to Lu, and $93,500 to Barb; Interest allowances of 10% on their Initial capital Investments; and the remaining balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb. . Prepare the December 31 journal entry to close Income Summary assuming they agree to use plan (c) and that net Income is 487,500 . Mo, Lu, and Barb withdraw $38,100,$52,100, and $68,100, respectively, at year-end. Also close the withdrawals accounts. Journal entry worksheet Record the entry to close the partners' withdrawals accounts. (Mo, Lu, and Barb withdraw $38,100,$52,100, and $68,100, respectively, at year-end.) Note: Enter debits before credits

Answer & Explanation Solved by verified expert
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

What are \"cell formation cycles\" and why would one want to use them?

Physics
1.2K views

A cooling fan is turned off when it is running at 900rev/min . It turns 1100...

Electrical Engineering
1.2K views

Design a four-pole Chebychev bandpass filter which a passband of 4750 rads/sec to 5250 rad/s. The...

Biology
1.2K views

The Mechanism of Phagocytosis Chemotaxis: Chemical signals attract phagocytes to microorganismsAdherence: Attachment of a phagocyte...

Basic Math
1.2K views

Drives Co sells portable hard drives They can sell 800 drives when the price is...

Basic Math
1.2K views

Major loss is always the main reason for headloss in pipe flows Select one O...

Basic Math
1.2K views

Imagine that you work for a company that sells hardware to various businesses. You receive...

Calculus
1.2K views

Listen Determine where f is discontinuous x if x 0 5 x if 0 x...

Algebra
1.2K views

3 Use Gauss Jordan elimination to solve where possible the systems of equations AZ B...

Accounting
1.2K views

Sally and Michael Metcalfe are common-law partners have who have lived together for the last...

Accounting
1.2K views

Required information Problem 9-62 and 9-63 (Algo) Cain Components manufactures and distributes various plumbing products...

Accounting
1.2K views

During Heaton Company's first two years of operations, it reported absorption costing net operating income...