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Problem 14-11 (Algo) (LO 14-4, 14-5, 14-6) A partnership begins its first year of operations with the following capital balances: Allegan, Capital Berrien, Capital Kent, Capital According to the articles of partnership, all profits will be assigned as follows: • Allegan will be awarded an annual salary of $18,000 with $9.000 assigned to Kent. . The partners will be attributed Interest equal to 10 percent of the capital balance as of the first day of the year. The remainder will be assigned on a 5:23 basis, respectively. . Each partner is allowed to withdraw up to $5,000 per year. The net loss for the first year of operations is $30,000, and net Income for the subsequent year is $35,000. Each partner withdraws the each period. maximum amount from Required: Prepare schedules that compute the balances in each partner's capital account at the end of each of the first two years of partnership operations. Ending aital Ending Capital Balance Year Balance Year One Two $82,000 72,000 82,000 Prepare schedules that compute the balances in each partner's capital account at the end of Year One of partnership operations. Note: Amounts to be deducted should be indicated with minus sign. Beginning capital Net loss Drawings Ending capta ALLEGAN, BERRIEN, and KENT Statement of Partner's Capital For the Year One Allegan S S 82.000 S (10.000) (5,000 87.000 $ Berrien 72.000 S (30.000) (5.000) 37.000 $ Kent 62.000 5 (50,000) 9.000 47.000 Total 238.000 710.000 000) 151/000 Show less

Problem 14-11 (Algo) (LO 14-4, 14-5, 14-6) A partnership begins its first year of operations with the following capital balances: Allegan, Capital Berrien, Capital Kent, Capital According to the articles of partnership, all profits will be assigned as follows: • Allegan will be awarded an annual salary of $18,000 with $9.000 assigned to Kent. . The partners will be attributed Interest equal to 10 percent of the capital balance as of the first day of the year. The remainder will be assigned on a 5:23 basis, respectively. . Each partner is allowed to withdraw up to $5,000 per year. The net loss for the first year of operations is $30,000, and net Income for the subsequent year is $35,000. Each partner withdraws the each period. maximum amount from Required: Prepare schedules that compute the balances in each partner's capital account at the end of each of the first two years of partnership operations. Ending aital Ending Capital Balance Year Balance Year One Two $82,000 72,000 82,000 Prepare schedules that compute the balances in each partner's capital account at the end of Year One of partnership operations. Note: Amounts to be deducted should be indicated with minus sign. Beginning capital Net loss Drawings Ending capta ALLEGAN, BERRIEN, and KENT Statement of Partner's Capital For the Year One Allegan S S 82.000 S (10.000) (5,000 87.000 $ Berrien 72.000 S (30.000) (5.000) 37.000 $ Kent 62.000 5 (50,000) 9.000 47.000 Total 238.000 710.000 000) 151/000 Show less

FINANCIAL ACCOUNTING
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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Problem 14-11 (Algo) (LO 14-4, 14-5, 14-6) A partnership begins its first year of operations with the following capital balances: Allegan, Capital Berrien, Capital Kent, Capital $82,000 72,000 82,000 According to the articles of partnership, all profits will be assigned as follows: Allegan will be awarded an annual salary of $18,000 with $9.000 assigned to Kent • The partners will be attributed Interest equal to 10 percent of the capital balance as of the first day of the year. • The remainder will be assigned on a 5.23 basis, respectively. . Each partner is allowed to withdraw up to $5,000 per year The net loss for the first year of operations is $30,000, and net Income for the subsequent year is $35,000. Each partner withdraws the maximum amount from the business each period. Required: Prepare schedules that compute the balances in each partner's capital account at the end of each of the first two years of partnership operations. Ending apital Ending Capital Balance Year Balance Year One TWO Prepare schedules that compute the balances in each partner's capital account at the end of Year One of partnership operations. Note: Amounts to be deducted should be indicated with minus sign. Beginning capital Net loss Drawings Ending capital ALLEGAN, BERRIEN, and KENT Statement of Partner's Capital For the Year One Allegan S S 82.000 $ (10.000) (5,000) 87,000 $ Berrien 72.0005 (30.000) (5.000) 37.000 $ Kent 62000 S (30/0001 5.000 47,000 S Total 2238.000 710.0001 15/0001 181/000 Show less4
Transcribed Image Text:Problem 14-11 (Algo) (LO 14-4, 14-5, 14-6) A partnership begins its first year of operations with the following capital balances: Allegan, Capital Berrien, Capital Kent, Capital $82,000 72,000 82,000 According to the articles of partnership, all profits will be assigned as follows: Allegan will be awarded an annual salary of $18,000 with $9.000 assigned to Kent • The partners will be attributed Interest equal to 10 percent of the capital balance as of the first day of the year. • The remainder will be assigned on a 5.23 basis, respectively. . Each partner is allowed to withdraw up to $5,000 per year The net loss for the first year of operations is $30,000, and net Income for the subsequent year is $35,000. Each partner withdraws the maximum amount from the business each period. Required: Prepare schedules that compute the balances in each partner's capital account at the end of each of the first two years of partnership operations. Ending apital Ending Capital Balance Year Balance Year One TWO Prepare schedules that compute the balances in each partner's capital account at the end of Year One of partnership operations. Note: Amounts to be deducted should be indicated with minus sign. Beginning capital Net loss Drawings Ending capital ALLEGAN, BERRIEN, and KENT Statement of Partner's Capital For the Year One Allegan S S 82.000 $ (10.000) (5,000) 87,000 $ Berrien 72.0005 (30.000) (5.000) 37.000 $ Kent 62000 S (30/0001 5.000 47,000 S Total 2238.000 710.0001 15/0001 181/000 Show less4
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