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Brandon Smithson and Lakendra Mooney formed a partnership, dividing income as follows:
1. Annual salary allowance to Mooney of $53,000.
2. Interest of 14% on each partner's capital balance on January 1.
3. Any remaining net income divided equally.
Smithson and Mooney had $50,000 and $150,000, respectively, in their January 1 capital balances. Net income for the year was $240,000.
How much net income should be distributed to Mooney?
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Include any necessary journal entries and drafts of appropriate disclosure notes.
Hendrickson Corporation reported net income of $50,000 in 2010. Depreciation expense was $17,000. The following working capital accounts changed.
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On January 1, 2011, Sauder Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Sauder to make annual payments of $50,000 at the beginning of each year for five years with title to pass to Sauder at t..
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