A partnership has the following capital balances: Artur, Capital Bella, Capital Callo, Capital $ 60,000 30,000 90,000 Profits and losses are split as follows: Artur (20%), Bella (30%), and Callo (50%). Callo wants to leave the partnership and is paid $100,000 from the business based on provisions in the articles of partnership. Required: Assuming the partnership uses the bonus method, compute the balance of Bella's capital account after Callo withdraws. Note: Amounts to be deducted should be indicated with minus sign. Bella's capital balance before withdrawal bonus to Callo Allocation of Callo's bonus Bella's capital balance after Callo's withdrawal

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A partnership has the following capital balances:
Artur, Capital
Bella, Capital
Callo, Capital
$ 60,000
30,000
90,000
Profits and losses are split as follows: Artur (20%), Bella (30%), and Callo (50%). Callo wants to leave the partnership and is
paid $100,000 from the business based on provisions in the articles of partnership.
Required:
Assuming the partnership uses the bonus method, compute the balance of Bella's capital account after Callo withdraws.
Note: Amounts to be deducted should be indicated with minus sign.
Bella's capital balance before withdrawal bonus to Callo
Allocation of Callo's bonus
Bella's capital balance after Callo's withdrawal
Transcribed Image Text:es A partnership has the following capital balances: Artur, Capital Bella, Capital Callo, Capital $ 60,000 30,000 90,000 Profits and losses are split as follows: Artur (20%), Bella (30%), and Callo (50%). Callo wants to leave the partnership and is paid $100,000 from the business based on provisions in the articles of partnership. Required: Assuming the partnership uses the bonus method, compute the balance of Bella's capital account after Callo withdraws. Note: Amounts to be deducted should be indicated with minus sign. Bella's capital balance before withdrawal bonus to Callo Allocation of Callo's bonus Bella's capital balance after Callo's withdrawal
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