On March 1, 2011, Abbey and Dames formed a partnership. Abbey contributed $88,00
ID: 2371540 • Letter: O
Question
On March 1, 2011, Abbey and Dames formed a partnership. Abbey contributed $88,000 cash and Dames contributed land valued at $70,000 and a building valued at $100,000. The partnership also assumed responsibility for Dames’s $80,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Abbey is to receive an annual salary allowance of $30,000, both are to receive an annual interest allowance of 10% of their beginning-year capital investment, and any remaining income or loss is to be shared equally. On October 20, 2011, Abbey withdrew $32,000 cash and Dames withdrew $25,000 cash. After the adjusting and closing entries are made to the revenue and expense accounts at December 31, 2011, the Income Summary account had a credit balance of $79,000.
Determine the balances of the partners' capital accounts as of December 31, 2011. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)
On March 1, 2011, Abbey and Dames formed a partnership. Abbey contributed $88,000 cash and Dames contributed land valued at $70,000 and a building valued at $100,000. The partnership also assumed responsibility for Dames’s $80,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Abbey is to receive an annual salary allowance of $30,000, both are to receive an annual interest allowance of 10% of their beginning-year capital investment, and any remaining income or loss is to be shared equally. On October 20, 2011, Abbey withdrew $32,000 cash and Dames withdrew $25,000 cash. After the adjusting and closing entries are made to the revenue and expense accounts at December 31, 2011, the Income Summary account had a credit balance of $79,000.
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