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Arthur, Brett and Candy have operated a small hardware store for a number of years as a partnership. At the beginning of 2021, the
Arthur, Brett and Candy 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: Arthur Brett Candy $82,000 $62,000 $30,000 Due to a cash shortage, Arthur invests an additional in the business on April 1, 2021. Each partner withdraws just $6,000 $700 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: Arthur $12,000 Brett $26,000 Candy $7,000 15% -Each partner is credited with interest equal to of the average monthly capital balance for the year without regard for normal drawings. -Any remaining profit or loss is allocated to Arthur, Brett and Candy, respectively. 5:3:2 Candy $30,000 Due to a cash shortage, Arthur invests an additional in the business on April 1, 2021. Each partner withdraws just $6,000 $700 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: Arthur $12,000 Brett $26,000 Candy $7,000 -Each partner is credited with interest equal to of the average monthly capital balance for the year without regard for normal drawings. 15% -Any remaining profit or loss is allocated to Arthur, Brett and Candy, respectively. 5:3:2 The net income for 2021 is $24,000 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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