Question
Kennia and Shantia Partnerships accounting period is from April to March. On April 1, 2016, Kennia and Shantia have capital of $23,000 and $42,000 respectively.
Kennia and Shantia Partnerships accounting period is from April to March. On April 1, 2016, Kennia and Shantia have capital of $23,000 and $42,000 respectively. Net income for the year totals $15,000. Withdrawals for the year were $850 and $1,200 respectively. The partners income sharing ratio is 1:4, respectively. During the year, Kennia won lottery and invested an additional $1,500 in the business. If you were to prepare a statement of partners' equity at year end, calculate Kennias capital balance at the end of the year.
a. $26,650
b. $78,450
c. $52,800
d. $31,150
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