- On January 1 2020 The Dental Partnership Of Angela Diaz And Krause Was Formed When The Partners Contributed 48 000 1 (75.84 KiB) Viewed 15 times
On January 1, 2020, the dental partnership of Angela, Diaz, and Krause was formed when the partners contributed $48,000, $75,000, and $78,000, respectively. Over the next three years, the business reported net income and (loss) as follows: 2020 2021 2022 $ 88,000 60,000 (43,000) During this period, each partner withdrew cash of $20,000 per year. Krause invested an additional $5,000 in cash on February 9, 2021. At the time that the partnership was created, the three partners agreed to allocate all profits and losses according to a specified plan written as follows: • Each partner is entitled to interest computed at the rate of 10 percent per year based on the individual capital balances at the beginning of that year. Because of prior work experience, Angela is entitled to an annual salary allowance of $14,500 per year, and Diaz is entitled to an annual salary allowance of $10,800 per year. Any remaining profit will be split as follows: Angela, 20 percent; Diaz, 35 percent, and Krause, 45 percent. If a net loss remains after the initial allocations to the partners, the balance will be allocated: Angela, 30 percent; Diaz, 45 percent; and Krause, 25 percent. Prepare a schedule that determines the ending capital balance for each partner as of the end of each of these three years. Complete this
question by entering your answers in the tabs below. Ending Capital Ending Capital Ending Capital Balance 2020 Balance 2021 Balance 2022 Prepare a schedule that determines the ending capital balance for each partner as of the end of 2020. (Amounts to be deducted should be indicated with minus sign.) Beginning balances Net income allocation Drawings Ending balances ANGELA, DIAZ, and KRAUSE
Statement of Partners' Capital For the Year Ending December 31, 2020 Angela Diaz $ $ 75,000 $ 7,500 48,000 $ (4,800) 17,600 60,800 $ 82,500 < Ending Capital Balance 2020 $ Krause 78,000 7,800 $ 85,800 $ Total 201,000 10,500 17,600 229,100 Ending Capital Balance 2021 >
Prepare a schedule that determines the ending capital balance for each partner as of the end of each of these three years. Complete this
question by entering your answers in the tabs below. Ending Capital Ending Capital Ending Capital Balance 2020 Balance 2021 Balance 2022 Prepare a schedule that determines the ending capital balance for each partner as of the end of 2021. (Amounts to be deducted should be indicated with minus sign.) Beginning balances Additional investment Net income allocation Drawings Ending balances ANGELA, DIAZ, and KRAUSE
Statement of Partners' Capital For the Year Ending December 31, 2021 Angela Diaz $ 0 $ < Ending Capital Balance 2020 0 $ Krause $ 0 S Total 0 0 0 0 0 Ending Capital Balance 2022 >
Prepare a schedule that determines the ending capital balance for each partner as of the end of each of these three years. Complete this
question by entering your answers in the tabs below. Ending Capital Ending Capital Ending Capital Balance 2020 Balance 2021 Balance 2022 Prepare a schedule that determines the ending capital balance for each partner as of the end of 2022. (Amounts to be deducted should be indicated with minus sign. Do not round intermediate calculations. Round your final answers to nearest dollar amounts.) Beginning balances Income allocation Drawings Ending balances ANGELA, DIAZ and KRAUSE
Statement of Partners' Capital For the Year Ending December 31, 2022 Angela Diaz $ 0 $ 0 $ < Ending Capital Balance 2021 Krause $ 0 $ Total 0 0 0 0 Ending Capital Balance 2022 >