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capita $58,00 um, Capital , capital 48,000 58,000 ng to the articles of partnership, all profits will be assigned as follows: on will be awarded an annual salary of $18,000 with $9,000 assigned to Sale artners will be attributed interest equal to 10 percent of the capital balance as

capita $58,00 um, Capital , capital 48,000 58,000 ng to the articles of partnership, all profits will be assigned as follows: on will be awarded an annual salary of $18,000 with $9,000 assigned to Sale artners will be attributed interest equal to 10 percent of the capital balance as

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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winston, Capital Durham, Capital Salem, Capital $58,000 48,000 58,000 According to the articles of partnership, all profits will be assigned as follows: Winston will be awarded an annual salary of $18,000 with $9,000 assigned to Salem. The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year. The remainder will be assigned on a 5:2:3 basis, respectively. · Each partner is allowed to withdraw up to $10,000 per year. The net loss for the first year of operations is $22,000 and net income for the subsequent year is $28,000. Each partner withdraws the maximum amount from the business each period. What is the balance in Winston's capital account at the end of the second year? Multiple Choice $39,100 O $51,010 $45,910 $55,910
Transcribed Image Text:winston, Capital Durham, Capital Salem, Capital $58,000 48,000 58,000 According to the articles of partnership, all profits will be assigned as follows: Winston will be awarded an annual salary of $18,000 with $9,000 assigned to Salem. The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year. The remainder will be assigned on a 5:2:3 basis, respectively. · Each partner is allowed to withdraw up to $10,000 per year. The net loss for the first year of operations is $22,000 and net income for the subsequent year is $28,000. Each partner withdraws the maximum amount from the business each period. What is the balance in Winston's capital account at the end of the second year? Multiple Choice $39,100 O $51,010 $45,910 $55,910
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