On January 1, 2018, Lamb and Mona LLP admitted Noris to a 20% interest in net assets for an investment of $50,000 cash. Prior to the admission of Noris, Lamb and Mona had net assets of $100,000 and an income-sharing ratio of 25% to Lamb and 75% to Mona. After the admission of Noris, the partnership contract included the following provisions:? Salary of $40,000 a year to Noris. ? Remaining net income in ratio Lamb 20%, Mona 60%, Noris 20% ? During the fiscal year ended December 31, 2018, the partnership had income of $90,000 prior to recognition of salary to Noris.Record the journal entry to record the remainder of net income to the capital accounts.
What will be an ideal response?
| Income Summary ($90,000 - $40,000) | 50,000 | |
| Lamb, Capital ($50,000 × 0.20) | 10,000 | |
| Mona, Capital ($50,000 × 0.60) | 30,000 | |
| Noris, Capital ($50,000 × 0.20) | 10,000 | |
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