Problem 14-22 (Algo) (LO 14-4, 14-5, 14-6)

Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2021, capital balances were as follows:

Purkerson	$	50,000
Smith		36,000
Traynor		15,000

Due to a cash shortage, Purkerson invests an additional $10,000 in the business on April 1, 2021.

Each partner is allowed to withdraw $800 cash each month.

The partners have used the same method of allocating profits and losses since the business's inception:

• Each partner is given the following compensation allowance for work done in the business: Purkerson, $13,000; Smith, $23,000; and Traynor, $6,000.
• Each partner is credited with interest equal to 10 percent of the average monthly capital balance for the year without regard for normal drawings.
• Any remaining profit or loss is allocated 3:3:4 to Purkerson, Smith, and Traynor, respectively. The net income for 2021 is $32,000. Each partner withdraws the allotted amount each month.

Prepare a schedule showing calculations for the partners' 2021 ending capital balances. (Amounts to be deducted should be indicated with minus sign.)