Waverley $35,000 Marquez 40,000 The following additional partner transactions took place during the year: In early January, Houston is admitted to the partnership by contributing $25,000 cash for a 25% interest. Net income of $260,000 was earned. In addition, Waverley received a salary allowance of $30,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Houston. The partners' withdrawals are equal to 30% of their respective distributions of income after salary allowance (i.e., 30% their respective portions of the $230,000). How much did Marquez and Houston withdraw for the year? What is the total partnership capital balance on December 31? What is each partner's capital account on December 31? [For this calculation Waverley did not take the salary allowance as a withdrawal but allowed
Waverley $35,000 Marquez 40,000 The following additional partner transactions took place during the year: In early January, Houston is admitted to the partnership by contributing $25,000 cash for a 25% interest. Net income of $260,000 was earned. In addition, Waverley received a salary allowance of $30,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Houston. The partners' withdrawals are equal to 30% of their respective distributions of income after salary allowance (i.e., 30% their respective portions of the $230,000). How much did Marquez and Houston withdraw for the year? What is the total partnership capital balance on December 31? What is each partner's capital account on December 31? [For this calculation Waverley did not take the salary allowance as a withdrawal but allowed
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please solve with Explanation And Do not Give solution in image format
![The partnership of Miner Company began operations on January 1, with contributions as follows:
Waverley $35,000
Marquez
40,000
The following additional partner transactions took place during the year:
In early January, Houston is admitted to the partnership by contributing $25,000 cash for a 25% interest.
Net income of $260,000 was earned. In addition, Waverley received a salary allowance of $30,000 for the
year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting
Houston.
The partners' withdrawals are equal to 30% of their respective distributions of income after salary
allowance (i.e., 30% their respective portions of the $230,000).
How much did Marquez and Houston withdraw for the year?
What is the total partnership capital balance on December 31? What is each partner's capital account on
December 31? [For this calculation Waverley did not take the salary allowance as a withdrawal but allowed
it to remain in the member equity account.]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c2c2f9b-c8de-48f6-b914-06d2bfc90071%2Fbcebc92c-6e96-4f2f-847e-3373d1d40af2%2Fgv9arur_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The partnership of Miner Company began operations on January 1, with contributions as follows:
Waverley $35,000
Marquez
40,000
The following additional partner transactions took place during the year:
In early January, Houston is admitted to the partnership by contributing $25,000 cash for a 25% interest.
Net income of $260,000 was earned. In addition, Waverley received a salary allowance of $30,000 for the
year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting
Houston.
The partners' withdrawals are equal to 30% of their respective distributions of income after salary
allowance (i.e., 30% their respective portions of the $230,000).
How much did Marquez and Houston withdraw for the year?
What is the total partnership capital balance on December 31? What is each partner's capital account on
December 31? [For this calculation Waverley did not take the salary allowance as a withdrawal but allowed
it to remain in the member equity account.]
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