Use the Following Information to Answer the Question(s)below

question 3

Essay

Use the following information to answer the question(s)below.
Adam,Bella,and Chris operate a partnership with a complex profit and loss sharing agreement.The average capital balance for Adam,Bella and Chris on December 31,2011 is $120,000,$270,000,and $340,000,respectively.A 6% interest allocation is provided to each partner based on the average capital balance on December 31,2011.Adam and Bella receive salary allocations of $40,000 and $50,000,respectively.If partnership net income is above $160,000,after the salary allocations are considered (but before the interest allocations are considered),Chris will receive a bonus of 10% of the income (pre-salary and interest,but net of the bonus).All residual income is allocated in the ratios of 2:2:6 to Adam,Bella,and Chris,respectively.
-Required:
1.Prepare a schedule to allocate income to the partners assuming that partnership net income for 2011 is $330,000.
2.Prepare a journal entry to distribute the partnership's income to the partners (assume that an Income Summary account is used by the partnership).

---

Definitions:

Key Applications

Critical or essential software programs that serve specific purposes within an organization or for individual use.

Replacement Request

A formal or informal request to replace something that is lost, damaged, unsatisfactory, or no longer meets the needs.

External Respiration

The exchange of gases (oxygen and carbon dioxide) between the atmosphere and the blood through the lung alveoli.

Pulmonary Ventilation

The process of moving air in and out of the lungs to facilitate gas exchange with the internal environment, mainly by bringing in oxygen and flushing out carbon dioxide.