Question
In: Accounting
Purkerson $ 82,000 Smith 62,000 Traynor 30,000 Due to a cash shortage, Purkerson invests an additional...
| Purkerson | $ | 82,000 |
| Smith | 62,000 | |
| Traynor | 30,000 | |
|
|
||
Due to a cash shortage, Purkerson invests an additional $6,000 in the business on April 1, 2018.
Each partner is allowed to withdraw $700 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, $14,000; Smith, $24,000; and Traynor, $4,000.
- 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 3:2:5 to Purkerson, Smith, and Traynor, respectively. The net income for 2018 is $24,000. Each partner withdraws the allotted amount each month.
What are the ending capital balances for 2018?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership....
Purkerson, Smith, and Traynor have operated a bookstore for a
number of years as a partnership. At the beginning of 2021, capital
balances were as follows:
Purkerson
$
60,000
Smith
40,000
Traynor
20,000
Due to a cash shortage, Purkerson invests an additional $14,000
in the business on April 1, 2021.
Each partner is allowed to withdraw $1,000 cash each month.
The partners have used the same method of allocating profits and
losses since the business's inception:
Each partner is given...
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership....
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
$
62,000
Smith
42,000
Traynor
20,000
Due to a cash shortage, Purkerson invests an additional $16,000
in the business on April 1, 2018.
Each partner is allowed to withdraw $1,000 cash each month.
The partners have used the same method of allocating profits and
losses since the business's inception:
Each partner is given...
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership....
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
$
86,000
Smith
66,000
Traynor
30,000
Due to a cash shortage, Purkerson invests an additional $12,000
in the business on April 1, 2018.
Each partner is allowed to withdraw $900 cash each month.
The partners have used the same method of allocating profits and
losses since the business's inception:
Each partner is given...
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership....
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
$
96,000
Smith
76,000
Traynor
30,000
Due to a cash shortage, Purkerson invests an additional $6,000
in the business on April 1, 2018.
Each partner is allowed to withdraw $700 cash each month.
The partners have used the same method of allocating profits and
losses since the business's inception:
Each partner is given...
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership....
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
$
90,000
Smith
70,000
Traynor
30,000
Due to a cash shortage, Purkerson invests an additional $16,000
in the business on April 1, 2018.
Each partner is allowed to withdraw $1,000 cash each month.
The partners have used the same method of allocating profits and
losses since the business's inception:
Each partner is given...
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership....
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
$
60,000
Smith
40,000
Traynor
20,000
Due to a cash shortage, Purkerson invests an additional $8,000
in the business on April 1, 2018.
Each partner is allowed to withdraw $1,000 cash each month.
The partners have used the same method of allocating profits and
losses since the business's inception:
Each partner is given...
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership....
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
$
82,000
Smith
62,000
Traynor
30,000
Due to a cash shortage, Purkerson invests an additional $6,000
in the business on April 1, 2018.
Each partner is allowed to withdraw $700 cash each month.
The partners have used the same method of allocating profits and
losses since the business's inception:
Each partner is given...
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