Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Goodman, Pinkman, and White formed a partnership on January 1, 2020, and made dapital contributions of $125,000 (Goodman). $175,000 (Pinkman), and $250,000 (White), respectively. With

image text in transcribed
image text in transcribed
Goodman, Pinkman, and White formed a partnership on January 1, 2020, and made dapital contributions of $125,000 (Goodman). $175,000 (Pinkman), and $250,000 (White), respectively. With respect the division of income, they agreed to the following: (1) interest of an amount equal to 10% of the that partner's beginning capital balance for the year:(2) annual compensation of $15,000 to Pinkman; and (3) the remainder of the income or loss to be split among the partners in the following percentages: (a) 20% for Goodman: (b) 40% for Pinkman; and (c) 40% for White Net income was $200,000 ir 2020 and $240,000 in 2021. Each partner withdrew $1,500 for personal use every month during 2020 and 2021. What was Pinkman's capital balance at the end of 2020? $259.500. $90.000. $21,500. $260,000 241500

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

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall

4th Canadian Edition

0131971905, 978-0131971905

More Books

Students also viewed these Accounting questions

Question

1. Why is cash more liquid than loans for an FI?

Answered: 1 week ago