LO 14-4,14-5,E 14-611. A partnership begins its first year of operationswith the following capital balances:Winston, Capital $110,000Durham, Capital80,000Salem, Capital110,000According to the articles of partnership, all profitswill be assigned as follows:Winston will be awarded an annual salary of$20,000 with $10,000 assigned to Salem.The partners will be attributed interest equal to10 percent of the capital balance as of the firstday of the year.The remainder will be assigned on a 5:2:3 basis,respectively.Each partner is allowed to withdraw up to$10,000 рer year.The net loss for the first year of operations is$20,000, and net income for the subsequent year is$40,000. Each partner withdraws the maximumamount from the business each period. What isthe balance in Winston's capital account at theend of the second year?a. $102,600b. $104,400c. $108,600d. $109,200LO 14-1012. A partnership has the following capital balances:Allen, Capital$60,000Burns, Capital30,000ostollo Conitol

The partnership comes into existence when two or more partners agree to do the business and share…

A A partnership begins ils Ilrst yeɛ Ог орегаtions with the following capital balances: Winston, Capital $110,000 Durham, Capital 80,000 Salem, Capital 110,000 According to the articles of partnership, all profits will be assigned as follows: • Winston will be awarded an annual salary of $20,000 with $10,000 assigned to Salem. The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year. The remainder will be assigned on a 5:2.3 basis

A A partnership begins ils Ilrst yeɛ Ог орегаtions with the following capital balances: Winston, Capital $110,000 Durham, Capital 80,000 Salem, Capital 110,000 According to the articles of partnership, all profits will be assigned as follows: • Winston will be awarded an annual salary of $20,000 with $10,000 assigned to Salem. The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year. The remainder will be assigned on a 5:2.3 basis

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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