CH. 14
Hello, please help with all highlighted parts, NET INCOME ALLOCATION 2020, 2021, 2022.
Everything else is correct. Please show work, how you came up with the numbers. Don't copy other chegg posts please.
On January 1, 2020, the dental partnership of Angela, Diaz, and Krause was formed when the partners contributed $47,000, $75,000, and $77,000, respectively. Over the next three years, the business reported net income and (loss) as follows: 2020 2021 2022 $ 87,000 59,000 (42,000) During this period, each partner withdrew cash of $19,000 per year. Krause invested an additional $4,000 in cash on February 9, 2021. At the time that the partnership was created, the three partners agreed to allocate all profits and losses according to a specified plan written as follows: Each partner is entitled to interest computed at the rate of 10 percent per year based on the individual capital balances at the beginning of that year. Because of prior work experience, Angela is entitled to an annual salary allowance of $14,000 per year, and Diaz is entitled to an annual salary allowance of $10,700 per year. Any remaining profit will be split as follows: Angela, 20 percent; Diaz, 45 percent; and Krause, 35 percent. If a net loss remains after the initial allocations to the partners, the balance will be allocated: Angela, 30 percent; Diaz, 55 percent; and Krause, 15 percent. Prepare a schedule that determines the ending capital balance for each partner as of the end of each of these three years. Complete this question by entering your answers in the tabs below. Ending Capital Ending Capital Ending Capital Balance 2020 Balance 2021 Balance 2022 Prepare a schedule that determines the ending capital balance for each partner as of the end of 2020. (Amounts to be deducted should be indicated with minus sign.) ANGELA, DIAZ, and KRAUSE Statement of Partners' Capital For the Year Ending December 31, 2020 Angela Diaz Krause Total Beginning balances $ 47,000 s 75,000 $ 77,000 $ 199,000 Net income allocation Drawings (19,000) (19,000) (19,000) (57,000) Ending balances S 28,000 $ 56,000 $ 58,000 $ 142,000 0 (Ending Capital Balance 2020 Ending Capital Balance 2021 > Complete this question by entering your answers in the tabs below. Ending Capital Ending Capital Ending Capital Balance 2020 Balance 2021 Balance 2022 Prepare a schedule that determines the ending capital balance for each partner as of the end of 2021. (Amounts to be deducted should be indicated with minus sign.) ANGELA, DIAZ, and KRAUSE Statement of Partners' Capital For the Year Ending December 31, 2021 Angela Diaz Krause Total Beginning balances $ 55,180 $ 93,280 $ 80,540 $ 229,000 Additional investment 0 4,000 4,000 Net income allocation Drawings (19,000) (19,000) (19,000) (57,000) Ending balances $ 36,1805 74,280 $ 65,540 $ 176,000 0 0 Complete this question by entering your answers in the tabs below. Ending Capital Ending Capital Ending Capital Balance 2020 Balance 2021 Balance 2022 Prepare a schedule that determines the ending capital balance for each partner as of the end of 2022. (Amounts to be deducted should be indicated with minus sign. Do not round intermediate calculations. Round your final answers to nearest dollar amounts.) ANGELA, DIAZ and KRAUSE Statement of Partners' Capital For the Year Ending December 31, 2022 Angela Diaz Krause Total Beginning balances $ 57,978 s 99,438 $ 77,584 $ 235,000 Income allocation Drawings (19,000) (19,000) (19,000) (57,000) Ending balances $ 38.978 S 80,438 $ 58,584 $ 178,000 0
