Question

0 Required Intormation Problem 12-4A Partnershlp Income stetement of partners equlty, and closing entries LO P2 4% $31m.500, and $498.400, respectively They to La and S07000 io Barb, mierest siowances oco% en ther intial capital investments, and the balance shared as folows: 20% to Mo, 40%toLuond 40% to Bart. hiProblem 12-4A Port 2 O Type here to search

Answer 1

Answer

• All working forms part of the answer
• Requirement 2

Statement of Partner's Equity
	Mo	Lu	Barb	Total
Initial partnership Investments	$               80,100	$             311,500	$          498,400	$            890,000
Net Income:
Salary Allowance	$               85,600	$               64,200	$            97,000	$            246,800
Interest (on capital) allowance	$                 8,010	$               31,150	$            49,840	$              89,000
Remaining Net Income (Loss)	$               37,540	$               75,080	$            75,080	$            187,700
Total Net Income	$            131,150	$             170,430	$          221,920	$            523,500
TOTAL	$            211,250	$             481,930	$          720,320	$        1,413,500
Less: Drawings - Withdrawals	$               42,400	$               56,400	$            72,400	$            171,200
Ending Capital Investment balance	$            168,850	$             425,530	$          647,920	$        1,242,300

• Working

Statement of Partner's Equity
	Mo	Lu	Barb	Total
Initial partnership Investments	80100	311500	498400	=80100+311500+498400
Net Income:
Salary Allowance	85600	64200	97000	=85600+64200+97000
Interest (on capital) allowance	=80100*10%	=311500*10%	=498400*10%	=8010+31150+49840
Remaining Net Income (Loss)	=187700*20%	=187700*40%	=187700*40%	=523500-246800-89000
Total Net Income	Total	Total	Total	Total
TOTAL	=80100+131150	=311500+170430	=498400+221920	=211250+481930+720320
Less: Drawings - Withdrawals	42400	56400	72400	=42400+56400+72400
Ending Capital Investment balance	=211250-42400	=481930-56400	=720320-72400	=1413500-171200