Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A partnership begins its first year with the following copital balances: Alexander, Capital Bertrand, Capital Coloma, Capital $ 90,eee 100, eee 160,000 The articles of

image text in transcribed
A partnership begins its first year with the following copital balances: Alexander, Capital Bertrand, Capital Coloma, Capital $ 90,eee 100, eee 160,000 The articles of partnership stipulate that profits and losses be assigned in the following manner Each partner is allocated interest equal to 5 percent of the beginning capital balance. Bertrand is allocated compensation of $45,000 per year. . Any remaining profits and losses are allocated on a 3:3:4 basis, respectively. Each partner is allowed to withdraw up to $25.000 cash per year. Assuming that the net income is $115,000 and that each partner withdraws the maximum amount allowed, what is the balance in Coloma's capital account at the end of the year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Financial and Managerial Accounting

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

5th edition

9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292

Students also viewed these Accounting questions