On January 1, 2021, Lamb and Mona LLP Admitted Norris

question 16

Essay

On January 1, 2021, Lamb and Mona LLP admitted Norris to a 20% interest in net assets for an investment of $50,000 cash. Prior to the admission of Norris, Lamb and Mona had net assets of $100,000 and an income-sharing ratio of 25% to Lamb and 75% to Mona. After the admission of Norris, the partnership contract included the following provisions:Salary of $40,000 a year to Norris.Remaining net income in ratio Lamb 20%, Mona 60%, Norris 20%.During the fiscal year ended December 31, 2021, the partnership had income of $90,000 prior to recognition of salary to Norris.Record the journal entry to allocate the salary of Norris.

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Definitions:

Extinction

In psychology, the process through which a conditioned response diminishes and eventually disappears as a result of the conditioned stimulus being presented without the unconditioned stimulus.

Conditioned Response

The learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus in classical conditioning.

Food

Any nutritious substance that people or animals eat or drink to maintain life and growth.

Extended Exposure

A therapeutic technique involving repeated, prolonged contact with a feared stimulus, aiming to reduce anxiety or distress associated with it.