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Problem 14-11 (Algo) (LO 14.4, 14-5, 14-6) A partnership begins its first year of operations with the following capital balances: According to the articles of

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Problem 14-11 (Algo) (LO 14.4, 14-5, 14-6) A partnership begins its first year of operations with the following capital balances: According to the articles of partnership. all profits wil be assigned as follows: - Allegan wil be awarded an annual salary of $18.000 with $9.000 assigned to Kent: - The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year. - The remainder will be assigned on a 5:23 basis, respectively. - Each partner is allowed to withdraw up to $5,000 per year The net loss for the first year of operations is $30,000. and net income for the subsequent year is $35,000. Each partner withdraws the maximum amount from the business each period. Required: Prepare schedules that compute the balances in each partner's capital account at the end of each of the first two years of partnership operations. Prepare schedules that compute the balances in each parther's cepital account at the end of Vear One of partnership operations. Operabons. Note: Amounts to be decucted should be indicated with tinus sgn. A parthership begins its first year of operations with the following capltal balances: According to the articles of partnership, all profits will be assigned as follows: - Allegan wit be awarded an annual salary of $18.000 with $9.000 assigned to Kent. - The partners wil be attributed interest equal to 10 percent of the capital balance as of the first day of the year. - The remainder will be assigned on a 5:23 basts, respectively - Each partner is allowed to withdraw up to $5.000 peryest The net loss for the first year of operations is $30,000, and net income for the subsequent year is $35,000. Each partner withdraws the maximum amount from the business each period. Required: Prepare schedules that compute the balances in each partuer captral account at the end of each of the first two years of parthershp operatons. Prepare schedules that compute the balances in each partner's capital account at the end of Vear Two of parthership operations. Notes Amounte to be deducted thould be ndicated win minus shop

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