Prepare statement of partners capital Assume that there are three partners in a
ID: 2484095 • Letter: P
Question
Prepare statement of partners capital
Assume that there are three partners in a partnership, A, B, and C. Partners A and B each began the year with a capital account of $500,000. Partner C was admitted to the partnership during the year with a capital contribution of $300,000. The Partnership Agreement provides for a salary to Partner C of $50,000 and interest on the respective Capital Accounts of $25,000/$25,000/$11,250, respectively. During the year, the partners withdrew $20,000/$20,000/$10,000 and the allocation of profit was $115,500/$115,500/$57,750, respectively. Prepare the Statement of Partners’ Capital for the year.
Fill in each space that says "Answer":
A B C Total Statement of Partners' Capital: Capital account, beginning of year Answer Answer Answer Answer Capital contributions Answer Answer Answer Answer Withdrawals Answer Answer Answer Answer Salary Answer Answer Answer Answer Interest Answer Answer Answer Answer Allocation of remaining profit Answer Answer Answer Answer Answer Answer Answer AnswerExplanation / Answer
All Amounts in $ Fill in each space that says "Answer": A B C Total Statement of Partners' Capital: Capital account, beginning of year 500000 500000 1000000 Capital contributions 300000 300000 Withdrawals 20000 20000 10000 50000 Salary 50000 50000 Interest 25000 25000 11250 61250 Allocation of remaining profit 115500 115500 57750 288750 Closing Balance in Capital Account 620500 620500 409000 1650000