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The partnership of Jon, Kel, and Gla was created on January 2 , 2 0 1 6 , with each of the partners contribut ing
The partnership of Jon, Kel, and Gla was created on January with each of the partners contribut ing cash of $ Reported profits, withdrawals, and additional investments were as follows:
Reported Net Income
Withdrawals Additional Investments
$
$ Kel
$ Gla
Jon
Gla
Jon
Kel
Gla
Gla
Kel
The partnership agreement provides that partners are to be allowed percent interest on the beginningoftheyear capital balances, that Jon is to receive a $ salary allowance, and that remaining profits are to be divided equally.
After the books were closed on December it was discovered that depreciation had been understated by $ each year and that the inventory taken at December was understated by $
REQUIRED
Calculate the balances in the three capital accounts on January
Calculate the balances that should be in the three capital accounts on January taking into account the corrections that must be made for errors made in the calculation of income in
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