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Alford Beeson Carlton $ 82,000 62,000 30,000

Alford Beeson Carlton $ 82,000 62,000 30,000

FINANCIAL ACCOUNTING
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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Alford, Beeson, and Cariton have operated a coffee shop for a number of years as a partnership. At the beginning of 2024, capital balances were as follows: Alford Beeson Carlton Due to a cash shortage, Alford Invests an additional $6,000 in the business on April 1, 2024. Each partner is allowed to withdraw $700 cash each month. W The partners have used the same method of allocating profits and losses since the business's inception: Each partner is given the following compensation allowance for work done in the business: Alford, $14,000; Beeson, $24,000; and Carlton, $4,000 W $ 82,000 62,000 30,000 • Each partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for normal drawings. Any remaining profit or loss is allocated 3:2:5 to Alford, Beeson, and Carlton, respectively. The net income for 2024 is $24,000. Each partner withdraws the allotted amount each month. Required: Prepare a schedule showing calculations for the partners' 2024 ending capital balances. Note: Amounts to be deducted should be indicated with minus sign. Beginning balances Additional contribution Net income Drawings Ending capital balances ALFORD, BEESON, and CARLTON Statement of Partners Capital For the Year Ending December 31, 2024 Alford Beeson 5 05 Cariton $ OS Totals 0 0 0 0 0
Transcribed Image Text:Alford, Beeson, and Cariton have operated a coffee shop for a number of years as a partnership. At the beginning of 2024, capital balances were as follows: Alford Beeson Carlton Due to a cash shortage, Alford Invests an additional $6,000 in the business on April 1, 2024. Each partner is allowed to withdraw $700 cash each month. W The partners have used the same method of allocating profits and losses since the business's inception: Each partner is given the following compensation allowance for work done in the business: Alford, $14,000; Beeson, $24,000; and Carlton, $4,000 W $ 82,000 62,000 30,000 • Each partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for normal drawings. Any remaining profit or loss is allocated 3:2:5 to Alford, Beeson, and Carlton, respectively. The net income for 2024 is $24,000. Each partner withdraws the allotted amount each month. Required: Prepare a schedule showing calculations for the partners' 2024 ending capital balances. Note: Amounts to be deducted should be indicated with minus sign. Beginning balances Additional contribution Net income Drawings Ending capital balances ALFORD, BEESON, and CARLTON Statement of Partners Capital For the Year Ending December 31, 2024 Alford Beeson 5 05 Cariton $ OS Totals 0 0 0 0 0
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