Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2018, capital balances were as follows:
Purkerson $68,000
Smith 48,000
Traynor 20,000
Due to a cash shortage, Purkerson invests an additional $10,000 in the business on April 1, 2018.
Each partner is allowed to withdraw $800 cash each month.
The partners have used the same method of allocating profits and losses since the business's inception:
Each partner is given the following compensation allowance for work done in the business: Purkerson, $15,000; Smith, $25,000; and Traynor, $8,000.
Each partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for normal drawings.
Any remaining profit or loss is allocated 5:2:3 to Purkerson, Smith, and Traynor, respectively. The net income for 2018 is $26,000. Each partner withdraws the allotted amount each month.
What are the ending capital balances for 2018?
Answers: 2
Another question on Business
Business, 21.06.2019 20:30
The federal act which provided over $7 billion to the epa to protect and promote "green" jobs and a healthier environment is the - national environmental policy act. - resource recovery act.- resource conservation and recovery act.- american recovery and reinvestment act. - clean air act.
Answers: 1
Business, 22.06.2019 04:10
Universal containers(us) has an integration with its accounting system that creates tens of thousands of orders inside salesforce in a nightly batch. us wants to add automation that can attempt to match leads and contacts to these orders using the email address field on the insert. us is concerned about the performance of the automation with a large data volume. which tool should uc use to automate this process?
Answers: 1
Business, 22.06.2019 20:30
Exercise 7-7 martinez company reports the following financial information before adjustments. dr. cr. accounts receivable $168,900 allowance for doubtful accounts $3,200 sales revenue (all on credit) 849,300 sales returns and allowances 50,440 prepare the journal entry to record bad debt expense assuming martinez company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but allowance for doubtful accounts had a $1,550 debit balance. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when the amount is entered. do not indent manually.)
Answers: 3
Business, 22.06.2019 20:30
Considered alone, which of the following would increase a company's current ratio? a. an increase in net fixed assets.b. an increase in accrued liabilities.c. an increase in notes payable.d. an increase in accounts receivable.e. an increase in accounts payable.
Answers: 3
You know the right answer?
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At t...
Questions
Mathematics, 24.07.2020 22:01
Biology, 24.07.2020 22:01
Mathematics, 24.07.2020 22:01
