The Profit and Loss Sharing Agreement for the Tuttle,Upman,and Veer

question 43

Essay

The profit and loss sharing agreement for the Tuttle,Upman,and Veer partnership provides for residual profits and losses to be allocated 2:3:6 to Tuttle,Upman,and Veer,respectively.In 2014,the partnership recorded $11,000 of net income that was properly allocated to the partners' capital accounts.On January 18,2015,after the books were closed for 2014,Tuttle discovered that the $16,500 payment for the partnership's liability and workers compensation insurance for 2015 was recorded as insurance expense when it was paid on December 28,2014.
Required:
Prepare the necessary correcting entry(s)for the partnership.

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