ne profit. A&B Co. started operations on April 1, 20x1. Mr. A, a partner in A&B Co., is entitled to 6% interest on the weighted average balance of his capital account. Mr. A's ledger shows the following: A, Capital Ref. Date Debit Credit Balance April 1, 20x1 June 30, 20x1 September 30, 20x1 December 1, 20x1 001 100,000.00 100,000.00 79,000.00 87,000.00 83,000.00 098 21,000.00 146 8,000.00 211 4,000.00 Requirement; Compute for the interest on Mr. A's weighted average capital balance.
ne profit. A&B Co. started operations on April 1, 20x1. Mr. A, a partner in A&B Co., is entitled to 6% interest on the weighted average balance of his capital account. Mr. A's ledger shows the following: A, Capital Ref. Date Debit Credit Balance April 1, 20x1 June 30, 20x1 September 30, 20x1 December 1, 20x1 001 100,000.00 100,000.00 79,000.00 87,000.00 83,000.00 098 21,000.00 146 8,000.00 211 4,000.00 Requirement; Compute for the interest on Mr. A's weighted average capital balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ne profit.
A&B Co. started operations on April 1, 20x1. Mr. A, a partner
in A&B Co., is entitled to 6% interest on the weighted average
balance of his capital account. Mr. A's ledger shows the
following:
A, Capital
Ref.
Date
Debit
Credit
Balance
100,000.00
79,000.00
87,000.00
001
100,000.00
April 1, 20x1
June 30, 20x1
September 30, 20x1
December 1, 20x1
(98
21,000.00
146
8,000.00
211
4,000.00
83,000.00
Requirement: Compute for the interest on Mr. A's weighted
average capital balance.
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