LooseLeaf for Advanced Accounting (Irwin Accounting) - Standalone book
13th Edition
ISBN: 9781259444951
Author: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Publisher: McGraw-Hill Education
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Question
Chapter 14, Problem 22P
To determine
Determine the ending capital balances for 2018.
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Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2018, capital balances were as follows:
Due to a cash shortage, Purkerson invests an additional $8,000 in the business on April 1, 2018.
Each partner is allowed to withdraw $1,000 cash each month.
The partners have used the same method of allocating profits and losses since the business’s inception:
Each partner is given the following compensation allowance for work done in the business: Purkerson, $18,000; Smith, $25,000; and Traynor, $8,000.
Each partner is credited with interest equal to 10 percent of the average monthly capital balance for the year without regard for normal drawings.
Any remaining profit or loss is allocated 4:2:4 to Purkerson, Smith, and Traynor, respectively. The net income for 2018 is $23,600. Each partner withdraws the allotted amount each month.
What are the ending capital balances for 2018?
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2021, capital
balances were as follows:
Purkerson
Smith
Traynor
●
Due to a cash shortage, Purkerson invests an additional $14,000 in the business on April 1, 2021.
Each partner is allowed to withdraw $1,000 cash each month.
The partners have used the same method of allocating profits and losses since the business's inception:
$ 88,000
68,000
20,000
Each partner is given the following compensation allowance for work done in the business: Purkerson, $11,000; Smith, $27,000; and
Traynor, $4,000.
Each partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for
normal drawings.
Any remaining profit or loss is allocated 4:3:3 to Purkerson, Smith, and Traynor, respectively. The net income for 2021 is $30,000.
Each partner withdraws the allotted amount each month.
Prepare a schedule showing calculations for the…
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a
partnership. At the beginning of 2021, capital balances were as follows: Purkerson $ 96,000
Smith 76,000 Traynor 30, 000 Due to a cash shortage, Purkerson invests an additional $6,000
in the business on April 1, 2021. Each partner is allowed to withdraw $700 cash each month.
The partners have used the same method of allocating profits and losses since the business's
inception: Each partner is given the following compensation allowance for work done in the
business: Purkerson, $15,000; Smith, $25,000; and Traynor, $8,000. Each partner is credited
with interest equal to 20 percent of the average monthly capital balance for the year without
regard for normal drawings. Any remaining profit or loss is allocated 4:2:4 to Purkerson,
Smith, and Traynor, respectively. The net income for 2021 is $29,000. Each partner
withdraws the allotted amount each month. Prepare a schedule showing calculations for the…
Chapter 14 Solutions
LooseLeaf for Advanced Accounting (Irwin Accounting) - Standalone book
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. 19PCh. 14 - Prob. 20PCh. 14 - Prob. 21PCh. 14 - Prob. 22PCh. 14 - Prob. 23PCh. 14 - Prob. 24PCh. 14 - Prob. 25PCh. 14 - Prob. 26PCh. 14 - Following is the current balance sheet for a local...Ch. 14 - Prob. 28PCh. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Prob. 31PCh. 14 - Prob. 2DYSCh. 14 - Prob. 3DYSCh. 14 - Prob. 4DYSCh. 14 - Prob. 5DYS
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