Homework Help is Here – Start Your Trial Now!
Business
Accounting
8. Partner A first contributed P50,000 of capital into an existing partnership on March 1, 20x1. On June 1 20xl, Partner A contributed another P20,000. On September 1, 20x1, Partner A withdrew P15,000 from the partnership. Withdrawal in excess of PI0,000 is charged to the partner's capital account. The annual interest rate applicable to capital contributions is 12%. How much is the interest on the weighted average capital balance of Partner A in 20x1? a 6,200 b. 6,667 e. 7,567 d. 8,993

8. Partner A first contributed P50,000 of capital into an existing partnership on March 1, 20x1. On June 1 20xl, Partner A contributed another P20,000. On September 1, 20x1, Partner A withdrew P15,000 from the partnership. Withdrawal in excess of PI0,000 is charged to the partner's capital account. The annual interest rate applicable to capital contributions is 12%. How much is the interest on the weighted average capital balance of Partner A in 20x1? a 6,200 b. 6,667 e. 7,567 d. 8,993

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

8. Under Millan book. This is not a part of our exam but is included in the reference book and I want to review its answer.

Partner A first contributed P50,000 of capital into an existing partnership on March 1, 20x1. On June 1 20x1, Partner A contributed another P20,000. On September 1, 20x1, Partner A withdrew P15,000 from the partnership. Withdrawal in excess of P10,000 is charged to the partner's capital account. The annual interest rate applicable to capital contributions is 12%. How much is the interest on the weighted average capital balance of Partner A in 20x1? a 6,200 b. 6,667 c. 7,567 d. 8,993
Transcribed Image Text:Partner A first contributed P50,000 of capital into an existing partnership on March 1, 20x1. On June 1 20x1, Partner A contributed another P20,000. On September 1, 20x1, Partner A withdrew P15,000 from the partnership. Withdrawal in excess of P10,000 is charged to the partner's capital account. The annual interest rate applicable to capital contributions is 12%. How much is the interest on the weighted average capital balance of Partner A in 20x1? a 6,200 b. 6,667 c. 7,567 d. 8,993
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS