Ex. 175Cain, Foley, and Hardy formed a partnership on January 1, 2012. Cain invested $60,000, Foley$60,000 and Hardy $140,000. Cain will manage the store and work 40 hours per week in thestore. Foley will work 20 hours per week in the store, and Hardy will not work. Each partnerwithdrew 40 percent of his income distribution during 2012. If there was no income distribution toa partner, there were no withdrawals of cash.InstructionsCompute the partners' capital balances at the end of 2012 under the following independentconditions: (Hint: Use T accounts to determine each partner's capital balances.)

The partner's capital account is the account in which all transactions between the partner and the…

Answered: Compute the partners' capital balances…

Compute the partners' capital balances at the end of 2012 under the following independent conditions: (Hint: Use T accounts to determine each partner's capital balances.)

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.11AP

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Question

Ex. 175
Cain, Foley, and Hardy formed a partnership on January 1, 2012. Cain invested $60,000, Foley
$60,000 and Hardy $140,000. Cain will manage the store and work 40 hours per week in the
store. Foley will work 20 hours per week in the store, and Hardy will not work. Each partner
withdrew 40 percent of his income distribution during 2012. If there was no income distribution to
a partner, there were no withdrawals of cash.
Instructions
Compute the partners' capital balances at the end of 2012 under the following independent
conditions: (Hint: Use T accounts to determine each partner's capital balances.)

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