Journalize Herington's admission to the firm
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E12-4 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.
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Solution Summary
I put amounts and formulas into the template as instructed and competed the journal entry to distribute to the partnership. This shows two scenarios--one where income is sufficient to cover interest and salary allowance and one where it is not.
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I put amounts and formulas into the template as instructed and ...
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