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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

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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: Due to a cash shortage. Purkerson invests an additional $10,000 in the business on April 1, 2021. Each parther is allowed to withdraw $800 cash each month. The parthers have used the same method of allocating profis and losses since the business's inception: - Each parther is given the following compensation aliowance for work done in the business: Purkerson, $10,000; Smith, $20,000; - Eoch partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for and Trayner, $6,000. - Any remaining profit or loss is allocated 53:2 to Purkerson, Smith, and Trayno, respectively. The net income for 2021 is $20,000. normal drawings. Each partner withdraws the allotted amount each month. Prepare a schedule showing calculations for the partners' 2021 ending capital bolances. (Amounts to be deducted should be indicated with minus sign.) Due to a cash shortage, Purkerson invests an additional $10,000 in the business on April1, 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, $10,000;$mith,$20,000; and Traynor, $6,000 - Each partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for normal drawings. - Any remaining profit or loss is allocated 5:3:2 to Purkerson, Smith, and Traynor, respectively. The net income for 2021 is $20,000. 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.)

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