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Activity in the capital accounts o 2019, follows: apital accounts of the partners of Brown & Finley LLP for the fiscal Brown part 2 number 3
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Statement of Total income of Crespo and Smith

Particulars Crespo Smith
Interest on capital(a) $15,840 $26,160
Salary(b) $32,000 $46,000
Income Share (c) $8,400 $19,600
Total $56,240 $91,760

a) Calculation of interest on capital = Average capital * Interest rate

Crespo = $132,000*12%

= $15840/-

Smith = $218,000*12%

= $26,160/-

b) Salary

Crespo =$32,000/-

Smith = $46,000/-

c) income share

Total Income Crespo-smith ltd =$148,000

Less: Interest on Capital =$42,000

($15840+$26160)

Less: Salary =$78,000

($32,000+$46000)

Net Income $28,000

Crespo Share =$28000*30% =$8,400/-

Smith Sahre =$28,000*70% =$19,600/-

Statement of Total income of Crespo and Smith

Particulars Crespo Smith
Interest on capital(a) $15,840 $26,160
Salary(b) $32,000 $46,000
Income Share (c) $8,400 $19,600
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