The Pelosi, Trump, and Biden (PTB) Partnership had the following balance sheet on December 31st 2020: Cash 50000 accounts payable 200000 account rec. 200000 note payable 100000 inventory 300000 building 300000 Pelosi capital 100000 equipment 200000 Trump capital 700000 land 100000 Biden capital 50000 total asset 1150000 Pelosi, Trump and Biden equally share profits: Pelosi 40%, Trump 50% Biden 10%. Pelosi gets a salary of $40,000. Trump gets a salary of $50,000. Biden doesn't get a salary. Partners receive interest at 10% on their beginning of the year capital balance. Each year Pelosi takes out $70,000 for beauty treatments, Trump takes out $55,000 for Orange Hair Dye, and Biden takes out $20,000 for ice cream. Income before partner interest and partner salaries is as follows: 2021 $300,000 2022 $40,000 2023 $315,000 Required: A) determine the distribution of income to the partners each year. B) determine the ending capital balance of each partner on December 31st 2021, 2022 and 2023.
The Pelosi, Trump, and Biden (PTB) Partnership had the following balance sheet on December 31st 2020: Cash 50000 accounts payable 200000 account rec. 200000 note payable 100000 inventory 300000 building 300000 Pelosi capital 100000 equipment 200000 Trump capital 700000 land 100000 Biden capital 50000 total asset 1150000 Pelosi, Trump and Biden equally share profits: Pelosi 40%, Trump 50% Biden 10%. Pelosi gets a salary of $40,000. Trump gets a salary of $50,000. Biden doesn't get a salary. Partners receive interest at 10% on their beginning of the year capital balance. Each year Pelosi takes out $70,000 for beauty treatments, Trump takes out $55,000 for Orange Hair Dye, and Biden takes out $20,000 for ice cream. Income before partner interest and partner salaries is as follows: 2021 $300,000 2022 $40,000 2023 $315,000 Required: A) determine the distribution of income to the partners each year. B) determine the ending capital balance of each partner on December 31st 2021, 2022 and 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Pelosi, Trump, and Biden (PTB)
| Cash | 50000 | accounts payable | 200000 | ||
| account rec. | 200000 | note payable | 100000 | ||
| inventory | 300000 | ||||
| building | 300000 | Pelosi capital | 100000 | ||
| equipment | 200000 | Trump capital | 700000 | ||
| land | 100000 | Biden capital | 50000 | ||
| total asset | 1150000 |
Pelosi, Trump and Biden equally share profits: Pelosi 40%, Trump 50% Biden 10%. Pelosi gets a salary of $40,000. Trump gets a salary of $50,000. Biden doesn't get a salary. Partners receive interest at 10% on their beginning of the year capital balance.
Each year Pelosi takes out $70,000 for beauty treatments, Trump takes out $55,000 for Orange Hair Dye, and Biden takes out $20,000 for ice cream.
Income before partner interest and partner salaries is as follows:
| 2021 | $300,000 |
| 2022 | $40,000 |
| 2023 | $315,000 |
Required:
A) determine the distribution of income to the partners each year.
B) determine the ending capital balance of each partner on December 31st 2021, 2022 and 2023.
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