A partnership begins its first year of operations with the following capital balances:

According to the articles of partnership, all profits will be assigned as follows:

Allegan will be awarded an annual salary of $$14,000$ with $$7,000$ 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 $$6,000$ per year.

The net loss for the first year of operations is $$22,000,$ and net income for the subsequent year is $$26,000.$ 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. A partnership begins its first year of operations with the following capital balances:

According to the articles of partnership, all profits will be assigned as follows:

Allegan will be awarded an annual salary of $$14,000$ with $$7,000$ 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 $$6,000$ per year.

The net loss for the first year of operations is $$22,000,$ and net income for the subsequent year is $$26,000.$ 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.