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Alex, Baker and Carlton have operated a small hardware store for a number of years as a partnership. At the beginning of 2021, the capital
Alex, Baker and Carlton have operated a small hardware store for a number of years as a partnership. At the beginning of 2021, the capital balances were as follows: Alex Baker Carlton $88,000 $68,000 $20,000 $14,000 Due to a cash shortage, Alex invests an additional in the business on April 1, 2021. Each partner withdraws just $1,000 cash each month. The partners have used the same method of allocating profits and losses since they started the business. -Each partner is given the following compensation for their work at the store: Alex $11,000 Baker $27,000 Carlton $4,000 20% -Each partner is credited with interest equal to of the average monthly capital balance for the year without regard for normal drawings. 4:3:3 Any remaining profit or loss is allocated to Alex, Baker and Carlton, respectively. The net income for 2021 is $30,000 Each partner withdraws the allotted amount each month. Prepare a schedule showing the distribution of 2021 net income to the partners following the method of allocating profits and losses used by the partners since they started the business
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