Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 14, Problem 11P
To determine
Identify the balance in person W’s capital account at the end of the second year.
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A partnership begins its first year of operations with the following capital balances:
Winston, Capital
$
64,000
Durham, Capital
54,000
Salem, Capital
64,000
According to the articles of partnership, all profits will be assigned as follows:
Winston will be awarded an annual salary of $12,000 with $6,000 assigned to Salem.
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 5:2:3 basis, respectively.
Each partner is allowed to withdraw up to $6,000 per year.
The net loss for the first year of operations is $24,000 and net income for the subsequent year is $26,000. Each partner withdraws the maximum amount from the business each period. What is the balance in Winston’s capital account at the end of the second year?
a. $53,930
b. $59,930
c. $56,930
d. $46,300
A partnership begins its first year of operations with the following capital balances:
Winston, Capital
$ 52,000
Durham, Capital
Salem, Capital
42,000
52,000
According to the articles of partnership, all profits will be assigned as follows:
• Winston will be awarded an annual salary of $12,000 with $6,000 assigned to Salem.
⚫ 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 5:2:3 basis, respectively.
• Each partner is allowed to withdraw up to $5,000 per year.
The net loss for the first year of operations is $20,000 and net income for the subsequent year is $25,000. Each partner withdraws the
maximum amount from the business each period. What is the balance in Winston's capital account at the end of the second year?
A partnership begins its first year of operations with the following capital balances: Allegan, Capital $ 50,000 Berrien,
Capital 40,000 Kent, Capital 50,000 According to the articles of partnership, all profits will be assigned as follows:
Allegan will be awarded an annual salary of $10,000 with $5,000 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 5:2:
3 basis, respectively. Each partner is allowed to withdraw up to $8,000 per year. The net loss for the first year of
operations is $20,000, and net income for the subsequent year is $24,000. 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. Prepare schedules that compute the balances
in each partner's capital account at the end of Year…
Chapter 14 Solutions
Advanced Accounting
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - Prob. 3QCh. 14 - Prob. 4QCh. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - Prob. 8QCh. 14 - Prob. 9QCh. 14 - Prob. 10Q
Ch. 14 - Prob. 11QCh. 14 - Prob. 12QCh. 14 - What is a partnership dissolution? Does...Ch. 14 - Prob. 14QCh. 14 - Prob. 15QCh. 14 - Prob. 16QCh. 14 - Prob. 17QCh. 14 - When a partner withdraws from a partnership, why...Ch. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3PCh. 14 - Prob. 4PCh. 14 - Prob. 5PCh. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Prob. 11PCh. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 14PCh. 14 - Prob. 15PCh. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Prob. 18PCh. 14 - Prob. 19P
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