Khalid,Dina and James Are Partners with Beginning-Year Capital Balances of $400,000,$320,000

question 91

Essay

Khalid,Dina and James are partners with beginning-year capital balances of $400,000,$320,000 and $160,000,respectively.The partners agreed to share income and loss as follows: Salary of $30,000 to Khalid,$50,000 to Dina and $55,000 to James.An interest allowance of 10% on beginning-of-year capital balances.Any remaining balance is to be divided equally.If partnership net income for the year is $190,000,determine each partner's share and make the appropriate journal entry to close the Income Summary to the capital accounts.

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Definitions:

Fallacy of Affirming the Consequent

A logical fallacy that occurs when, from an if-then statement, one incorrectly infers the if-part solely from the then-part.

Affirming the Consequent

A logical fallacy in which a conclusion is incorrectly derived from a conditional statement (if A, then B; B, therefore A).

Straw Man Fallacy

A logical fallacy that involves misrepresenting an argument to make it easier to attack.

Appeal to Emotion

A logical fallacy where an argument is made by manipulating the emotions of the audience rather than by using valid reasoning.