Multiple choice a)$120900. b) $118300 c) $80600 d) $126100 e) $111500 Saved Help
ID: 2406676 • Letter: M
Question
Multiple choice
a)$120900. b) $118300 c) $80600 d) $126100 e) $111500
Saved Help Save & A partnership began its first year of operations with the following capital balances: Young, Capital: $143,000 Eaton, Capital: $104,000 Thurman, Capital: $143,000 The Articles of Partnership stipulated that profits and losses be assigned in the following manner Young was to be awarded an annual salary of $26,000 and $13,000 salary was to be awarded to Thurman . Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year. The remainder was to be assigned on a 523 basis to Young, Eaton, and Thurman, respectively. Each partner withdrew $13,000 per year. What was the balance in Thurman's Capital account at the end of the first year? the first year of operations was $26,000 with net income of $52,000 in the second year Multiple Choice $120,900 $118,300. k Prev e of 9 Next> 413 PMExplanation / Answer
The answer is d - $126,100
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Young Eaton Thurman Total Capital $ 143,000.00 $ 104,000.00 $ 143,000.00 $ 390,000.00 Salary $ 26,000.00 $ - $ 13,000.00 $ 39,000.00 Interest on Capital @ 10% $ 14,300.00 $ 10,400.00 $ 14,300.00 $ 39,000.00 Withdrew $ (13,000.00) $ (13,000.00) $ (13,000.00) $ (39,000.00) Loss of First Year(5:2:3) $ (52,000.00) $ (20,800.00) $ (31,200.00) $ (104,000.00) Ending Capital $ 118,300.00 $ 80,600.00 $ 126,100.00 $ 325,000.00Related Questions
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