Rick, Mary, and Joe formed a partnership on January 1, 2017, with investments of $100,000, $150,000, and

$200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital

balance each year, (2) annual compensation

of $10,000 to Mary, and (3) sharing the remainder of the

income or loss in a ratio of 20% for Rick, and 40% each for Mary and Joe. Net income was $150,000 in

2017 and $180,000 in 2018. Each partner withdrew $1,000 for personal use every month during 2017 a

nd

2018.

Instruction:

Please prepare the Statement of Partners' Capital Balances for 2017 & 2