Question

Mhomd and Baker organized their partnership on 1/1/2018. The following entries were made into their capital accounts during 2018: Mhomd Debit Credit Balance 1/1 55,000 55,000 1/6 15,000 70,000 1/10 25,000 95,000 12/1 15,000 80,000 Baker 1/1 45,000 45,000 1/3 10,000 55,000 9/1 15,000 40,000 1/11 10,000 30,000 1/12 40,000 70,000 If partnership profits for the year equaled $66,000, indicate the allocations between the partners under the following independent profit-sharing allocation conditions: 1) Interest of 15% is allocated on weighted average capital balance, Salaries are allocated to Mhomd and Baker in the amount of $25,000 and $35,000, respectively and the remainder is divided 40% to Baker and 60% Mhomd 2) A bonus of 12% of partnership profits after (bonus, salary and interest) bonus is credited to Mhomd , a salary of $15,000 is allocated to Baker, a $10,000 salary is allocated to Mhomd, 10% interest on weighted capital is allocated, and remainder is split equally

Answer 1