Question
White and Morse had beginning capital balances of $22,000 and $19,000, respectively. The two partners fail to agree on a profit-and-loss-sharing ratio. For the
White and Morse had beginning capital balances of $22,000 and $19,000, respectively. The two partners fail to agree on a profit-and-loss-sharing ratio. For the first month (June 2024), the partnership has a net loss of $5,000. Read the requirements. Requirement 1. How much of this loss goes to White? How much goes to Morse? White's loss Morse's loss 2500 2500 Requirement 2. The partners withdrew no assets during June. What is each partner's capital balance at June 30? Prepare a T-account for each partner's capital account. Determine each partner's capital balance using these T-accounts. White, Capital Morse, Capital Jun. 1 2500 22000 Jun, 1 Jun. 1 2500 22000 Jun. 1 19000 Clos. (loss) 19000 Clos. (loss)
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