Question

Rod Dall Co. reports net income of $69,000. The income ratios are Rod 50% and Dall 50%. Indicate the division of net income to each partner, and prepare the entry to distribute the net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Explanation:

Computation table;  

Particulars                          Total    Rod        Dall

Net Income  ($69,000)50%   $69,000 $34,500  $34,500

Journal Entry;

Account title                             Debit          Credit

P&L App               A/C     Dr    $69,000  

To Rod Capital A/C                                 $34,500

To Dall Capital A/C                                 $34,500