Assume the same facts as above except change net income to

Assume the same facts as above except change net income to...

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Assume the same facts as above except change net income to $39,000. After allocating the salary  allowances of $32,000 and interest of $16,000, too much net income has been allocated. The  difference between the $48,000 allocated and the $39,000 net income, a decrease of $9,000, is the  remainder to be allocated equally to each partner. These assumptions would result in allocations of 
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Unformatted text preview: net income to Dee of $14,000, Sue of $13,000, and Jeanette of $12,000. The calculations are as shown: Allocation of Net Income of $39,000 Dee Sue Jeanette Total Salary allowances $15,000 $12,000 $5,000 $32,000 Interest (10% of beginning capital account balance) 2,000 4,000 10,000 16,000 17,000 16,000 15,000 48,000 Remainder (equally) (3,000) (3,000) (3,000) (9,000) Net Income $14,000 13,000 $12,000 $39,000...
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This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

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