Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. alford, beeson, and cariton have operated a coffee

Alford, Beeson, and Cariton have operated a coffee shop for a number of years as...

70.2K

Verified Solution

Question

Accounting

image
Alford, Beeson, and Cariton have operated a coffee shop for a number of years as a partnership. At the beginning of 2024, capital balances were as follows: Due to a cash shortage, Alford invests an additional \$14,000 in the business on April 1, 2024. Each partner is allowed to withdraw $1,000 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, $10,000; Beeson, $20,000, and Cartion, $6.000. - 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 3:25 to Alford, Beeson, and Cariton, respectively, The net income for 2024 is $30,000. Each partner withdraws the allotted amount each month. Required: Prepare a schedule showng calculations for the partners' 2024 ending capital balances. Note: Amourts to be deducted should be indicated with minus sign

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students