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
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 3SEB
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