A partnership begins its first year with the following capital balances: Alexander, Capital Bertrand, Capital Coloma, Capital $66,000 76,000 86,000 The articles of partnership stipulate that profits and losses be assigned in the following manner: • Each partner is allocated interest equal to 8 percent of the beginning capital balance. • Bertrand is allocated compensation of $10,000 per year. • Any remaining profits and losses are allocated on a 3:3:4 basis, respectively. • Each partner is allowed to withdraw up to $6,000 cash per year. Assuming that the net income is $76,000 and that each partner withdraws the maximum amount allowed, what is the balance in Coloma's capital account at the end of the year?
A partnership begins its first year with the following capital balances: Alexander, Capital Bertrand, Capital Coloma, Capital $66,000 76,000 86,000 The articles of partnership stipulate that profits and losses be assigned in the following manner: • Each partner is allocated interest equal to 8 percent of the beginning capital balance. • Bertrand is allocated compensation of $10,000 per year. • Any remaining profits and losses are allocated on a 3:3:4 basis, respectively. • Each partner is allowed to withdraw up to $6,000 cash per year. Assuming that the net income is $76,000 and that each partner withdraws the maximum amount allowed, what is the balance in Coloma's capital account at the end of the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![A partnership begins its first year with the following capital balances:
●
Alexander, Capital
Bertrand, Capital
Coloma, Capital
The articles of partnership stipulate that profits and losses be assigned in the following manner:
●
$66,000
76,000
86,000
Each partner is allocated interest equal to 8 percent of the beginning capital balance.
Bertrand is allocated compensation of $10,000 per year.
Any remaining profits and losses are allocated on a 3:3:4 basis, respectively.
Each partner is allowed to withdraw up to $6,000 cash per year.
Assuming that the net income is $76,000 and that each partner withdraws the maximum amount allowed, what is the balance in Coloma's capital account
at the end of the year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F439c2715-e1e8-4293-9573-b423797187da%2Fb60dfa73-dee5-4f8c-a46e-bd5c0d0bd521%2F0faa6kp_processed.png&w=3840&q=75)
Transcribed Image Text:A partnership begins its first year with the following capital balances:
●
Alexander, Capital
Bertrand, Capital
Coloma, Capital
The articles of partnership stipulate that profits and losses be assigned in the following manner:
●
$66,000
76,000
86,000
Each partner is allocated interest equal to 8 percent of the beginning capital balance.
Bertrand is allocated compensation of $10,000 per year.
Any remaining profits and losses are allocated on a 3:3:4 basis, respectively.
Each partner is allowed to withdraw up to $6,000 cash per year.
Assuming that the net income is $76,000 and that each partner withdraws the maximum amount allowed, what is the balance in Coloma's capital account
at the end of the year?
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