Question $4$ : he January $1,2017,$ balance sheet of the partnership of Linda Kingston and Jeannette Allen is shown below.

Assets Liabilities and Capital

Cash $$12,000$ Liabilities $$34,000$

Other assets $108,000$ Capital $-$ Kingston $35,600$

Capital $-$ Allen $50,400$

Total assets $$120,000$ Total liabilities and capital $$120,000$

The partnership reported revenues of $$48,000$ and expenses of $$33,000$ for $2017.$ Neither partner withdrew funds from the partnership during the year. Kingston invested $$4,800$ in the firm on June $28,2017.$

Required

Compute the December $31,2017,$ capital balance for each partner under each of the following assumptions:

$($a$)$ The partnership agreement does not specify how income is to be divided.

Balance at December $31,2017$

Kingston Answer $1$

Allen Answer $2$

$($b$)$ The partnership agreement specifies that Kingston receives $60$ percent of income and Allen $40$ percent.

Balance at December $31,2017$

Kingston Answer $3$

Allen Answer $4$

$($c$)$ The partnership agreement specifies that income is divided equally after paying each partner $10$ percent interest on her weighted average capital balance.

Balance at December $31,2017$

Kingston Answer $5$

Allen Answer $6$

$($d$)$ The partnership agreement specifies that Kingston and Allen receive salaries of $$7,200$ and $$4,800,$ respectively, and that each partner receives $5$ percent interest on her capital balance at the beginning of the year. Salary and interest allocations are to be fully implemented. Any remaining income is to be divided equally.

Balance at December $31,2017$

Kingston

Answer $7$

Allen

Answer $8$