Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Anna, Peter and John formed a limited liability partnership in 2022. In 2023, the beginning capital balance of each partner was $27,000, $40,500 and $67,500

Anna, Peter and John formed a limited liability partnership in 2022. In 2023, the beginning capital balance of each partner was $27,000, $40,500 and $67,500 respectively. During 2023, the company earned a net income of $51,000. Anna withdrew $28,000, while Peter and John withdrew $39,000 and $36,000 respectively

a) Calculate the amount of net income each partner will receive based on the following independent scenarios. (i) The earnings are divided equally. (ii) Anna receives 35%, Peter receives 39%, and John receives 26% of the earnings. (iii) The earnings are divided based on the partner's capital balance at the beginning of the year. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Do not use the negative sign.

(i) (ii) (iii)
Anna Answer Answer Answer
Peter Answer Answer Answer
John Answer Answer Answer

b) Calculate the ending capital balance of each partner, assuming that method (ii) is used to divide earnings.

Anna Peter John
Beginning Capital Balance Answer Answer Answer
Add: Share of net income Answer Answer Answer
Subtotal Answer Answer Answer
Less: Withdrawals (Answer) (Answer) (Answer)
Ending Capital Balance Answer Answer Answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

The Classification And Coding Of Accounting Information

Authors: R. Fox

2nd Edition

0948036885, 978-0948036880

More Books

Students also viewed these Accounting questions

Question

Is the person willing to deal with the consequences?

Answered: 1 week ago