Essay
REFERENCE: Ref.14-10
On January 1,2008,Lamb and Mona LLP admitted Noris to a 20% interest in net assets for an investment of $50,000 cash.Prior to the admission of Noris,Lamb and Mona had net assets of $100,000 and an income-sharing ratio of Lamb 25%,Mona 75%.After the admission of Noris,the partnership contract included the following provisions:
Salary of $40,000 a year to Noris.
Remaining net income in ratio Lamb 20%,Mona 60%,Noris 20%
During the fiscal year ended December 31,2008,the partnership had income of $90,000 prior to recognition of salary to Noris.
-Record the journal entry to record the net income to the capital accounts
Correct Answer:
Verified
Correct Answer:
Verified
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