### Partnership of Pelosi, Trump, Schiff, and DeSantis (PTSD) - Capital Accounts Overview#### Capital Accounts as of December 31st, 2022- **Pelosi:** $500,000- **Trump:** $500,000- **Schiff:** $200,000- **DeSantis:** $200,000#### Partnership Agreement Details- **Profit Distribution:** - Pelosi: 30% - Trump: 30% - Schiff: 20% - DeSantis: 20% - **Loss Distribution:** Divided equally among partners. - **Interest on Capital:** Partners receive 10% interest on their beginning-of-the-year capital accounts.- **Salaries:** - Schiff: $35,000 - DeSantis: $35,000- **Withdrawals:** - Pelosi: $50,000 annually for beauty parlor treatments. - Trump: $45,000 annually for hair care products.#### Reported Income for 2023, 2024, and 2025- **2023:** $400,000- **2024:** $150,000- **2025:** $350,000#### Requirements- **For Each Year Determine:** - **A) Allocation of Partnership Profits** - **B) Each Partner's Ending Capital Account Balance**This financial overview provides the foundation for calculating profit allocations and capital balances for each partner annually, considering the partnership's agreement terms and the incomes reported.

A partnership is a form of business where two or more people undertake a venture for the common…

On December 31st 2022 the partnership of Pelosi, Trump, Schiff, and DeSantis (PTSD) have the following capital accounts PELOSI TRUMP SCHIFF DESANTIS In the partnership agreement: $500,000 $500,000 2023 2024 2025 $200,000 $200,000 profits are divided: Pelosi 30%, Trump 30% Schiff and DeSantis 20% each Losses are divided equally Partners receive interest of 10% on their beginning of the year capital accounts Schiff and DeSantis receive salaries of $35,000 each Pelosi makes annual withdrawls of $50,000 for beauty parlor treatments Trump makes annual withdrawls of $45,000 for hair care products The partnership reported the following income for 2023, 2024 and 2025 (before partner interest or partner salaries) $400,000 $150,000 $350,000 REQUIRED: FOR EACH YEAR DETERMINE A) ALLOCATION OF PARTNERSHIP PROFITS B) EACH PARTNERS ENDING CAPITAL ACCOUNT BALANCE

On December 31st 2022 the partnership of Pelosi, Trump, Schiff, and DeSantis (PTSD) have the following capital accounts PELOSI TRUMP SCHIFF DESANTIS In the partnership agreement: $500,000 $500,000 2023 2024 2025 $200,000 $200,000 profits are divided: Pelosi 30%, Trump 30% Schiff and DeSantis 20% each Losses are divided equally Partners receive interest of 10% on their beginning of the year capital accounts Schiff and DeSantis receive salaries of $35,000 each Pelosi makes annual withdrawls of $50,000 for beauty parlor treatments Trump makes annual withdrawls of $45,000 for hair care products The partnership reported the following income for 2023, 2024 and 2025 (before partner interest or partner salaries) $400,000 $150,000 $350,000 REQUIRED: FOR EACH YEAR DETERMINE A) ALLOCATION OF PARTNERSHIP PROFITS B) EACH PARTNERS ENDING CAPITAL ACCOUNT BALANCE

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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