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James, Keller, and Rivers have the following capital balances; $ 9 0 , 0 0 0 , $ 8 5 , 0 0 0 and

James, Keller, and Rivers have the following capital balances; $90,000, $85,000 and
$125,000 respectively. Because of a cash shortage James invests an additional
$25,000 on June 1st. Rivers withdraw $15,000 on october 1st Each partner made
Drawings for $1,250 per month. James, Keller, and Rivers receive a salary of $25,000,
$15,000 and $30,000, respectively, for work done during the year. Each partner
receives interest of 12% on that partners monthly weighted average capital balance
without regard to normal drawings. Any remaining profits are split 20%,30%, and 50%
respectively. The net income for the year is $80,000. What are the ending capital
balances for each partner?
Required
1. Prepare schedule of net income allocation
2. Prepare a SStatatement of Partners Capital
3. Prepare a Closing entries

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