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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

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 $ 60,000
Smith 40,000
Traynor 20,000

Due to a cash shortage, Purkerson invests an additional $8,000 in the business on April 1, 2021.

Each partner is allowed to withdraw $1,000 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, $18,000; Smith, $25,000; and Traynor, $8,000.
  • 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 4:2:4 to Purkerson, Smith, and Traynor, respectively. The net income for 2021 is $23,600. Each partner withdraws the allotted amount each month.

Prepare a schedule showing calculations for the partners' 2021 ending capital balances

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