Question

In a company, beginning capital balances on June 1, 2020, are Coo $53,000 and Vid $65,500. During the month, drawings were Coo $8,200 and Vid $6,700. Net income was $30,000, and the partners share the income based on interest allowances of 10% on beginning capital balances and share the remaining income equally. What is the division of net income for Coo?

In a company, beginning capital balances on second quarter of 2020, are Coo $72,000 and Vid $67,500. During the quarter, drawings were Coo $11,500 and Vid $9,900. Net income was $37,000, and the partners share income equally. What is the company’s total equity in its statement of financial position at June 30, 2020?

Answer 1

1.

	Coo	Vid	Total
Net Income			$        30,000
Interest Allowance	$                5,300	$              6,550	$        11,850
Balance of Income			$        18,150
Balance of Income allocated	$                9,075	$              9,075	$        18,150
Income of each partner	$              14,375	$           15,625	$        30,000

2.

Statement of Partners Equity
	Coo	Vid	Total
Capital Balances, Beginning	$              72,000	$           67,500	$      139,500
Net Income	$              18,500	$           18,500	$        37,000
	$              90,500	$           86,000	$      176,500
Less Withdrawls	$              11,500	$              9,900	$        21,400
Capital Balances, Ending	$             79,000	$           76,100	$     155,100