Please Do not give solution in image format On January 1, 2020, the dental partnership of Angela, Diaz, and Krause was formed when the partnerscontributed $36,000, $64,000, and $66,000, respectively. Over the next three years, the business reportednet income and (loss) as follows:2020 $ 76,00048,000(31,000 )20212022During this period, each partner withdrew cash of $17,000 per year. Krause invested an additional $8,000in cash on February 9, 2021.At the time that the partnership was created, the three partners agreed to allocate all profits and lossesaccording to a specified plan written as follows:Each partner is entitled to interest computed at the rate of 10 percent per year based on the individualcapital balances at the beginning of that year.Because of prior work experience, Angela is entitled to an annual salary allowance of $15,000 per year,and Diaz is entitled to an annual salary allowance of $9,600 per year.Any remaining profit will be split as follows: Angela, 20 percent; Diaz, 40 percent; and Krause, 40 percent.If a net loss remains after the initial allocations to the partners, the balance will be allocated: Angela, 30percent; Diaz, 50 percent; and Krause, 20 percent.Prepare a schedule that determines the ending capital balance for each partner as of the end of each ofthese three years. Ending Capital Ending Capital Ending CapitalBalance 2020 Balance 2021 Balance 2022Prepare a schedule that determines the ending capital balance for each partner as of the erdeducted should be indicated with minus sign.)Beginning balancesNet income allocationDrawingsEnding balancesEnding Capital Ending Capital Ending CapitalBalance 2020 Balance 2021 Balance 2022Beginning balancesAdditional investmentNet income allocationDrawingsEnding balancesANGELA, DIAZ, and KRAUSEStatement of Partners' CapitalFor the Year Ending December 31, 2020AngelaDiaz$Beginning balancesIncome allocationDrawingsEnding balances0 $Prepare a schedule that determines the ending capital balance for each partner as of the erdeducted should be indicated with minus sign.)$ANGELA, DIAZ, and KRAUSEStatement of Partners' CapitalFor the Year Ending December 31, 2021AngelaDiazEnding Capital Ending Capital Ending CapitalBalance 2020 Balance 2021 Balance 20220 $< Ending Capital Balance 20200 $$ANGELA, DIAZ and KRAUSEStatement of Partners' Capital0 $0 $For the Year Ending December 31, 2022AngelaDiazKrauseKrause0 $0 $$Prepare a schedule that determines the ending capital balance for each partner as of thededucted should be indicated with minus sign. Do not round intermediate calculations. Rdollar amounts.)Krause$$TotalTotal$0 $Ending Capital Balance 200000000Total000000

Partnership is the relation between two or more person, it has the following characteristics They…

On January 1, 2020, the dental partnership of Angela, Diaz, and Krause was formed when the partners contributed $36,000, $64,000, and $66,000, respectively. Over the next three years, the business reported net income and (loss) as follows: 2020 $ 76,000 2021 48,000 2022 (31,000 ) During this period, each partner withdrew cash of $17,000 per year. Krause invested an additional $8,000 in cash on February 9, 2021. At the time that the partnership was created, the three partners agreed to allocate all profits and losses according to a specified plan written as follows: Each partner is entitled to interest computed at the rate of 10 percent per year based on the individual capital balances at the beginning of that year. Because of prior work experience, Angela is entitled to an annual salary allowance of $15,000 per year, and Diaz is entitled to an annual salary allowance of $9,600 per year. Any remaining profit will be split as follows: Angela, 20 percent; Diaz, 40 percent; and Krause, 40 percent. If a net loss remains after the initial allocations to the partners, the balance will be allocated: Angela, 30 percent; Diaz, 50 percent; and Krause, 20 percent. Prepare a schedule that determines the ending capital balance for each partner as of the end of each of these three years

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q