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A partnership begins its first year of operations with the following capital balances: According to the arteles of parthership, all profits will be assigned as

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A partnership begins its first year of operations with the following capital balances: According to the arteles of parthership, all profits will be assigned as follows: - Allegan will be awarded an annual salary of $10,000 with $5,000 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 $7,000 per year, The net loss for the first year of operations is $32,000, and net income for the subsequent year is $25,000. Each parther withdraws the maximum amount from the business each period. Required: Prepare schedules that compute the balances in each partner's capital occount at the end of each of the first two years of partheship operations: Prepare schedules that compute the balances in each partner's capital account ot the end of Year One of partnership operations. forte: Amounds to be defucted should be indicated with minus sign. The net loss for the first year of operations is $32,000, and net income for the subsequent year is $25,000. Eoch 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. Prepare schedules that compute the balences in each partner's capltal account at the end of Year One of partnership operations. Note: Amounta to be deducted should be indicated with minus sign. The net loss for the first year of operations is $32,000, and net income for the subsequent year is $25,000. 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 fwo ymars of parthership operations: Prepare schedules that compute the balances in each partner's capital account at the end of Year Two of parthership operations. Note: Amounts to be deducted should be indicated with minus sign

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