Scenario 1: The partnership agreement of Gibs and Reed Landscaping provides an $18,000 salary allowance...
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Scenario : The partnership agreement of Gibs and Reed Landscaping provides an $ salary allowance to Willis Gibs and a $ salary allowance to George Reed. Both partners are given interest on their capital balances at the beginning of the year. The beginning capital balance for Gibs was $ and for Reed, $ Any remaining income or loss is shared equally. Assume that the business had revenues of $ and expenses of $ resulting in net income of $ during its first year of operations. Calculate the net income distributed to each partner, and then prepare the journal entries to reflect the distribution assuming that each partner withdrew their allowance amount only. journal the net income and the drawing
Scenario : The partnership agreement of Gibs and Reed Landscaping provides an $ salary allowance to Willis Gibs and a $ salary allowance to George Reed. Both partners are given interest on their capital balances at the beginning of the year. The beginning capital balance for Gibs was $ and for Reed, $ Any remaining income or loss is shared equally. Assume that the business had revenues of $ and expenses of $ resulting in net income of $ during its first year of operations. Calculate the net income distributed to each partner, and then prepare the journal entries to reflect the distribution assuming that each partner withdrew their allowance amount only.
journal the net income and the drawing
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