Problem 13-6: Determine how the current-year profit of $330,000 is to be allocated among the partners. (with all steps plz).

or Meyers, 2. On June 30, both Luncul amount of $20,000 and $60,000, respecte $25.000 in excess of his salary. Gross billings during the current year were $500,000, $380,000, and $450,00 Lincoln, and Kopinski, respectively. Determine the final end-of-year capital balances for each partner, after all relevant dos entries have occurred. Problem 13-6 (LO 3. 4 Profit allocation involving interest on capital balance Rivera, Sampson, and Elliott are partners in a commercial plumbing business, Rivera Sampson have also started another contracting company and have cash flow needs, whil require periodic distributions from the partnership. In order to deal fairly with the level of nership withdrawals, the partnership agreement calls for profit sharing as follows: Elliott Rivera Component $80,000 0% Sampson $80,000 0% 10% $100,000 10% Salaries... 10% Bonus on income after the bonus... Interest on "average net capital Percentage of remaining profits.... 10% 30% 40% 30% "Average net capital is determined by netting the partners' drawing accounts against their capital accounts and weighting the net amounts for the appropriate portion of the year. On March 31 and September 30, $40,000 is allocated to each partner's capital account in anticipa. tion of the annual actual amount of profit. Activity in the drawing and capital accounts is as follows for the current calendar year: Rivera Elliott $ - 30,000 10,000 20,000 Sampson $ 40,000 25,000 50,000 30,000 20,000 Drawing Account Beginning balance January 1 ......... March 31 draws ............... . June 30 draws ............. September 30 draws............. Capital Account Beginning balance January 1 ....................... March 31 anticipated profit allocation ... March 31 capital investment. September 30 anticipated profit allocation............. September 30 loan conversion ................. 40,000 40,000 50,000 40,000 70,000 40,000 40,000 40,000 40,000 40,000 15,000 Sampson had loaned the partnership money in the past, and the transaction was proper fied as a loan payable on the statements of the partnership, On September 30, the loan accrued interest totaling $15.000 were converted from a loan payable to a capital investmen the partnership. Determine how the current year profit of $350,000 is to be allocated among the partner Problem 13-7 (LO 3, 4) Correcting capital balances. Rexcam is a partnership owne Wilson, Watts, and Franklin that manufactures special machine tools used primarily in tion molding applications. The partnershin had ship owned by marily in injec