Alford, Beeson, and Carlton have operated a coffee shop for a number of years as a partnership. At the beginning of 2024, capital balances were as follows: Alford Beeson Carlton Due to a cash shortage, Alford invests an additional $10,000 in the business on April 1, 2024. Each partner is allowed to withdraw $800 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: Alford, $15,000; Beeson, $25,000; and Carlton, $8,000. • Each partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for normal drawings. $ 84,000 64,000 20,000 • Any remaining profit or loss is allocated 5:2:3 to Alford, Beeson, and Carlton, respectively. The net income for 2024 is $26,000. Each partner withdraws the allotted amount each month. Required: Prepare a schedule showing calculations for the partners' 2024 ending capital balances. Note: Amounts to be deducted should be indicated with minus sign. Beginning balances Additional contribution Net income Drawings Ending capital balances ALFORD, BEESON, and CARLTON Statement of Partners' Capital For the Year Ending December 31, 2024 Alford Beeson Carlton Totals
Alford, Beeson, and Carlton have operated a coffee shop for a number of years as a partnership. At the beginning of 2024, capital balances were as follows: Alford Beeson Carlton Due to a cash shortage, Alford invests an additional $10,000 in the business on April 1, 2024. Each partner is allowed to withdraw $800 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: Alford, $15,000; Beeson, $25,000; and Carlton, $8,000. • Each partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for normal drawings. $ 84,000 64,000 20,000 • Any remaining profit or loss is allocated 5:2:3 to Alford, Beeson, and Carlton, respectively. The net income for 2024 is $26,000. Each partner withdraws the allotted amount each month. Required: Prepare a schedule showing calculations for the partners' 2024 ending capital balances. Note: Amounts to be deducted should be indicated with minus sign. Beginning balances Additional contribution Net income Drawings Ending capital balances ALFORD, BEESON, and CARLTON Statement of Partners' Capital For the Year Ending December 31, 2024 Alford Beeson Carlton Totals
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 3PA
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Transcribed Image Text:Alford, Beeson, and Carlton have operated a coffee shop for a number of years as a partnership. At the beginning of 2024, capital
balances were as follows:
Alford
Beeson
Carlton
Due to a cash shortage, Alford invests an additional $10,000 in the business on April 1, 2024.
Each partner is allowed to withdraw $800 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: Alford, $15,000; Beeson, $25,000; and
Carlton, $8,000.
$ 84,000
64,000
20,000
• Each partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for
normal drawings.
Any remaining profit or loss is allocated 5:2:3 to Alford, Beeson, and Carlton, respectively. The net income for 2024 is $26,000.
Each partner withdraws the allotted amount each month.
Required:
Prepare a schedule showing calculations for the partners' 2024 ending capital balances.
Note: Amounts to be deducted should be indicated with minus sign.
Beginning balances
Additional contribution
Net income
Drawings
Ending capital balances
ALFORD, BEESON, and CARLTON
Statement of Partners' Capital
For the Year Ending December 31, 2024
Alford
Beeson
Carlton
Totals
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