P 16-1 Partnership income allocation—Statement of partnership capital Ell, Far, and Gar are partners who share profits and losses 30 percent, 30 percent, and 40 percent, respectively, after Ell and Far each receive a $32,000 salary allowance. Capital balances on January 1, 2016, are as follows: Ell (30% $69,000 Far (30%) 85,500 Gar (40%) 245,500 During 2016, Gar invested an additional $20,000 in the partnership, and Ell and Far each withdrew $32,000, equal to their salary allowances as provided by the profit- and loss-sharing agreement. The partnership net assets at December 31, 2016, were $481,000. Required Prepare a statement of partnership capital for the year ended December 31, 2016.
P 16-1 Partnership income allocation—Statement of partnership capital
Ell, Far, and Gar are partners who share profits and losses 30 percent, 30 percent, and 40 percent, respectively, after Ell and Far each receive a $32,000 salary allowance. Capital balances on January 1, 2016, are as follows:
Ell (30%
$69,000
Far (30%)
85,500
Gar (40%)
245,500
During 2016, Gar invested an additional $20,000 in the partnership, and Ell and Far each withdrew $32,000, equal to their salary allowances as provided by the profit- and loss-sharing agreement. The partnership net assets at December 31, 2016, were $481,000.
Required
Prepare a statement of partnership capital for the year ended December 31, 2016.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
