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?

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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