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

question 84

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 record the remainder of net income to the capital accounts.

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Definitions:

Punctuated Correctly

Referring to text that has been marked with the correct use of punctuation marks according to the rules of grammar.

Conjunctions

Conjunctions are words used to connect clauses or sentences, or to coordinate words in the same clause, such as "and," "but," and "or."

Conjunctive Adverbs

Words that connect two independent clauses or sentences, providing a smooth transition by indicating comparison, contrast, sequence, or other relationships.

Punctuated Correctly

Marked with the appropriate punctuation marks to clarify meaning and indicate the intended breaks, pauses, and intonations in writing.