Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Take me to the text Anna, Paul and Jackson formed a limited liability partnership in 2019. In 2020, the beginning capital balance of each partner

Take me to the text Anna, Paul and Jackson formed a limited liability partnership in 2019. In 2020, the beginning capital balance of each partner was $21,000, $31,500 and $52,500 respectively. During 2020, the company earned a net income of $60,000, and Anna withdrew $24,000 while Paul and Jackson withdrew $45,000 and $36,000 respectively a) Calculate the amount of net income each partner will receive based on the following independent scenarios. (i) the earnings are divided equally. (ii) Anna receives 33%, Paul receives 39%, and Jackson receives 28% of the earnings. (iii) the earnings are divided based on the partner's capital balance at the beginning of the year. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Do not use the negative sign. (i) Anna 88235.29 Paul Jackson (ii) (iii) b) Calculate the ending capital balance of each partner, assuming that method (ii) is used to divide earnings. b) Calculate the ending capital balance of each partner, assuming that method (ii) is used to divide earnings. Beginning Capital Balance Add: Share of net income Subtotal Less: Withdrawals Ending Capital Balance Anna Paul Jackson

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Simplifying Finance And Accounting Function

Authors: Mr. Dauji Gupta

1st Edition

9353467276, 978-9353467272

More Books

Students also viewed these Accounting questions