AGF partnership begins its first year of operation with the following capital balances and profit and loss percentages: Able Capital $ 60,000 (20%) Green Capital $80,000 (30%) Frank Capital $ 100,000 (50%) Each partner is allocated interest of 5% on beginning capital balances. Green is allocated salary of $20,000 for the full year. Frank is allocated salary of $10,000 for the full year. Able is not allocated salary. Each partner has drawings of $30,000 in the first year. Assume that partnership net income in the first year is $300,000. What is the balance in Frank's capital account at the end of the year a. $214,000 Can anyone confirm b. $151,400 c. $235,000 d. $244,000 e. $274,000
AGF
Able Capital $ 60,000 (20%)
Green Capital $80,000 (30%)
Frank Capital $ 100,000 (50%)
Each partner is allocated interest of 5% on beginning capital balances.
Green is allocated salary of $20,000 for the full year. Frank is allocated salary of $10,000 for the full year. Able is not allocated salary.
Each partner has drawings of $30,000 in the first year.
Assume that partnership net income in the first year is $300,000. What is the balance in Frank's capital account at the end of the year
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a. |
$214,000 Can anyone confirm |
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b. |
$151,400 |
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c. |
$235,000 |
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d. |
$244,000
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e. |
$274,000 |
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