Question - The Fistman Company reports net income of $42,000. Interest allowances are Stewart $4,500 and Bliss $7,500; partner salary allowances are Stewart $27,000 and Bliss $15,000 and the remainder is shared equally.
Instructions: Indicate the division of net income to each partner, and prepare the entry to distribute the net income.
Question - Door Company at december 31 has cash $48,000, noncash assets $240,000, liabilities $132,000, and the following capital balances: Dolson $108,000 and Meier $48,000. The firm is liquidated, and $288,000 in cash is received for the noncash assets. Dolson and Meier income ratios are 60% and 40%, respectively.
Instructions: Prepare a cash distribution schedule.