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what is the balance in Coloma's capital account at the end of the year?

what is the balance in Coloma's capital account at the end of the year?

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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A partnership begins its first year with the following capital balances: Alexander, Capital Bertrand, Capital Coloma, Capital The articles of partnership stipulate that profits and losses be assigned in the following manner: • Each partner is allocated interest equal to 6 percent of the beginning capital balance. • Bertrand is allocated compensation of $18,000 per year. • Any remaining profits and losses are allocated on a 3:3:4 basis, respectively. • Each partner is allowed to withdraw up to $3,000 cash per year. $ 62,000 72,000 82,000 Assuming that the net income is $72,000 and that each partner withdraws the maximum amount allowed, what is the balance in Coloma's capital account at the end of the year? Multiple Choice $103,336 $86,920 $100,336
Transcribed Image Text:A partnership begins its first year with the following capital balances: Alexander, Capital Bertrand, Capital Coloma, Capital The articles of partnership stipulate that profits and losses be assigned in the following manner: • Each partner is allocated interest equal to 6 percent of the beginning capital balance. • Bertrand is allocated compensation of $18,000 per year. • Any remaining profits and losses are allocated on a 3:3:4 basis, respectively. • Each partner is allowed to withdraw up to $3,000 cash per year. $ 62,000 72,000 82,000 Assuming that the net income is $72,000 and that each partner withdraws the maximum amount allowed, what is the balance in Coloma's capital account at the end of the year? Multiple Choice $103,336 $86,920 $100,336
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