96% 6:18 https://edugen.wile c Weygandt, Accounting Principles, 12e PRINTER VERS

Question

96% 6:18 https://edugen.wile c Weygandt, Accounting Principles, 12e PRINTER VERSION Problem 12-2A (Part Level Submission) At the end of its first year of operations on December 31, 2017, NBS Company's accounts show the following. Partner Drawi Capital Art Niensted Greg Bolen Krista Sayler $23,300 13,800 10,900 $41,500 33,000 27,500 The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2017 has not been closed to the partners" capital accounts. Your answer is partially correct. Try again. Journalize the entry to record the division of net income for the year 2017 under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) Net income is $29,200. Income is shared 6:3:1. (2) Net Income is $40,900. Niensted and Bolen are given salary allowances of $14,600 and $10,700o, respectively. The remainder is shared equally Net Income is $19,200. Each partner Is allowed interest of 10% on beginning capital balances. Nlensted Is given a $15,300 salary allowance. The remainder is shared equally (3) Noscount Titles and Explanation Debit Credit Income Summary

Explanation / Answer

15300

* 10% interest on opening capital balance

art ( $4150)+greg ($3300)+krista ($2750) = 10200

Remaining income after paying salary to partner $3900(19200-15300)

art proportional share of intrest on capital 3900*4150/10200=1586

greg proportional share of intrest on capital   3900*3300/10200=1261

krista proportional share of intrest on capital 3900*2750/10200=1053

D. DIVISION OF NET INCOME

3900

Particulars Amount ($) net income of the year 19200 less: partner salary

15300

less: proportionate amount of intrest on capital * ( art + greg+ krista) 1586+1261+1053 Net income available for sharing by partners 0

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