James, Keller, and Rivers have the following capital balances; $68,000, $75,000 and $95,000 respectively. Because of a cash shortage James invests an additional $15,000 on June 1st. Rivers withdraw $10,000 on october 1st Each partner made Drawings for $1,000 per month. James, Keller, and Rivers receive a salary of $15,000, $20,000 and $25,000, respectively, for work done during the year. Each partner receives interest of 12% on that partner's monthly weighted average capital balance without regard to normal drawings. Any remaining profits are split 20%, 30%, and 50% respectively. The net income for the year is $50,000. What are the ending capital balances for each partner? Required 1. Prepare schedule of net income allocation 2. Prepare a SStatatement of Partners Capital 3. Prepare a Closing entries
James, Keller, and Rivers have the following capital balances; $68,000, $75,000 and $95,000 respectively. Because of a cash shortage James invests an additional $15,000 on June 1st. Rivers withdraw $10,000 on october 1st Each partner made Drawings for $1,000 per month. James, Keller, and Rivers receive a salary of $15,000, $20,000 and $25,000, respectively, for work done during the year. Each partner receives interest of 12% on that partner's monthly weighted average capital balance without regard to normal drawings. Any remaining profits are split 20%, 30%, and 50% respectively. The net income for the year is $50,000. What are the ending capital balances for each partner? Required 1. Prepare schedule of net income allocation 2. Prepare a SStatatement of Partners Capital 3. Prepare a Closing entries
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:James, Keller, and Rivers have the following capital balances; $68,000, $75,000 and $95,000 respectively. Because of a cash shortage James invests an additional $15,000
on June 1st. Rivers withdraw $10,000 on october 1st Each partner made Drawings for $1,000 per month. James, Keller, and Rivers receive a salary of $15,000, $20,000 and
$25,000, respectively, for work done during the year. Each partner receives interest of 12% on that partner's monthly weighted average capital balance without regard to
normal drawings. Any remaining profits are split 20%, 30%, and 50% respectively. The net income for the year is $50,000. What are the ending capital balances for each
partner? Required 1. Prepare schedule of net income allocation 2. Prepare a SStatatement of Partners Capital 3. Prepare a Closing entries
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