Question

Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2018, capital balances were as follows:

Purkerson	$	66,000
Smith		46,000
Traynor		20,000

Due to a cash shortage, Purkerson invests an additional $10,000 in the business on April 1, 2018.

Each partner is allowed to withdraw $600 cash each month.

The partners have used the same method of allocating profits and losses since the business's inception:

• Each partner is given the following compensation allowance for work done in the business: Purkerson, $12,000; Smith, $28,000; and Traynor, $8,000.
• Each partner is credited with interest equal to 10 percent of the average monthly capital balance for the year without regard for normal drawings.
• Any remaining profit or loss is allocated 2:2:6 to Purkerson, Smith, and Traynor, respectively. The net income for 2018 is $42,000. Each partner withdraws the allotted amount each month.

What are the ending capital balances for 2018?

	Ending Capital Balance
Purkerson	_________?
Smith	_________?
Traynor	_________?
Totals	_________?

Answer 1

9 NO 12 1350o pastclas Total 15360 9 86i0 (o) 2.u Srodtuy Gophl 15 360 28610(11o)4200D Grdigpa belana