Rodgers and Winter had capital balances of $60,000 and $90,000, respectively, at

Question

Rodgers and Winter had capital balances of $60,000 and $90,000, respectively, at the for salary allowances of S25, remaining net income divided equally. Net income for the current year was $110,000 of the current fiscal year. The artides of partnership r 000 and $30,000, respectively: an allowance of interest at 12% on the capital balances at the beginning of the year, and t the Division of net income section of the income statement for the current year. Net income $110,000 Rodgers Winter Total Division of net income: Interest allowance Net income b. Assuming that the net income had been $65,000 instead of $110,000, present the Division of net income section of the income statement for the Net income $65,000 Rodgers Winter Total Division of net income: My Tech (888) 736-2

Explanation / Answer

a.

Calculations: Remaining income = 110,000 - 73,000 = 37,000. This amount is equally divided between Rodgers and Winter.

b.

Rodgers Winter Total Division of net income: Salary allownace          25,000            30,000            55,000 Interest allowance            7,200            10,800            18,000 Total          32,200            40,800            73,000 Remaining income          18,500            18,500            37,000 Net income          50,700            59,300          110,000

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