Question

Required information Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2 [The following information applies to the questions displayed below.] Mo, Lu, and Barb formed the MLB Partnership by making investments of $69,300, $269,500, and $431,200, respectively. They predict annual partnership net income of $460,500 and are considering the following alternative plans of sharing income and loss: (a) equally; (b) in the ratio of their initial capital investments; or (C) salary allowances of $80,800 to Mo, $60,600 to Lu, and $91,000 to Barb; interest allowances of 10% on their initial capital investments; and the remaining balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb.

this one is the other side of the chart

Answer in this format please

Answer 1

Solution:

Schedule of Divison of income
Particulars	Mo	Lu	Barb	Total
Net Income (Loss)				$4,60,500
Balance allocated Equally	$1,53,500	$1,53,500	$1,53,500	$4,60,500
balance of Income (Loss)				$0
shares to partners	$1,53,500	$1,53,500	$1,53,500	$4,60,500
Schedule of Divison of income
Particulars	Mo	Lu	Barb	Total
Net Income (Loss)				$4,60,500
Balance allocated in proportion to initial capitals	$41,445	$1,61,175	$2,57,880	$4,60,500
balance of Income (Loss)				$0
shares to partners	$41,445	$1,61,175	$2,57,880	$4,60,500
Schedule of Divison of income
Particulars	Mo	Lu	Barb	Total
Net Income (Loss)				$4,60,500
Salary Allowance	$80,800	$60,600	$91,000	$2,32,400
balance of Income (Loss)				$2,28,100
Interest Allowance	$6,930	$26,950	$43,120	$77,000
balance of Income (Loss)				$1,51,100
Balance Allocated	$30,220	$60,440	$60,440	$1,51,100
Balance of Income (loss) (20%:40%:40%)				$0
shares to partners	$1,17,950	$1,47,990	$1,94,560	$4,60,500