(Answered) F calvert and g powers have capital balances on january 1

Accounting

F. Calvert and G. Powers have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income-sharing agreement provides for

(1) Annual salaries of $20,000 for Calvert and $12,000 for Powers,

(2) Interest at 10% on beginning capital balances, and

(3) Remaining income or loss to be shared 60% by Calvert and 40% by Powers.

Instructions

(a) Prepare a schedule showing the distribution of net income, assuming net income is

(1) $50,000 and

(2) $36,000

(b) Journalize the allocation of net income in each of the situations above.

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