Question
Corey and Malinda started a partnership on January 1, 2014. Corey invested $42,000 in the business, and Malinda invested $14,000. The partnership agreement stated that
Corey and Malinda started a partnership on January 1, 2014. Corey invested $42,000 in the business, and Malinda invested $14,000. The partnership agreement stated that profits would be divided between the partners based on their initial investment in the partnership. The business's net income for 2014 was $51,000. During the year, Corey withdrew $10,500, and Malinda withdrew $7,250. The balances in the partners' accounts at the end of 2014 were (Do not round intermediate calculations.)
| | Corey | Malinda | ||
| A | $ | 67,500 | $ | 39,500 |
| B | $ | 31,500 | $ | 6,750 |
| C | $ | 44,625 | $ | 44,625 |
| D | $ | 69,750 | $ | 19,500 |
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First we need to calculate the relative shares of Corey and Malinda in businesss net income Since th...
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Intermediate Accounting 2014 FASB Update
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
15th edition
978-1118938782, 111893878X, 978-1118985311, 1118985311, 978-1118562185, 1118562186, 978-1118147290
