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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 , capltal balances were
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2021 , capltal balances were as follows: Due to a cash shortage, Purkerson Invests an additional \$4,000 in the business on Aprll 1, 2021. Each partner is allowed to wlthdraw $500 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, \$12,000; Smith, $22,000; and Traynor, $8,000. - 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 4:3:3 to Purkerson, Smith, and Traynor, respectlvely. 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 capltal balances. (Amounts to be deducted should be Indlcated with minus sign.)
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