JJ and RR are partners engaged in a manufacturing business. They have a beginning capital on...
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JJ and RR are partners engaged in a manufacturing business. They have a beginning capital on January 1 of 50,000 and 70,000, respectively. JJ invests 60,000 on April 1 and withdrew 30,000 on September 1. RR invests 60,000 on September 1 and withdrew 20,000 on April 1. The income summary has a debit balance of 50,000 for the first year 2020. Agreement between JJ and RR are as follows: 1. Interest on average capital balance at 8% II. Bonus to JJ at 25% of net income III. Salaries of 25,000 and 35,000 are given to JJ and RR, respectively IV. Balance is to be divided equally 1. How much is the net increase/(decrease) in JJ's capital account during 2020? 2. How much is the net increase/(decrease) in RR's capital account during 2020? JJ and RR are partners engaged in a manufacturing business. They have a beginning capital on January 1 of 50,000 and 70,000, respectively. JJ invests 60,000 on April 1 and withdrew 30,000 on September 1. RR invests 60,000 on September 1 and withdrew 20,000 on April 1. The income summary has a debit balance of 50,000 for the first year 2020. Agreement between JJ and RR are as follows: 1. Interest on average capital balance at 8% II. Bonus to JJ at 25% of net income III. Salaries of 25,000 and 35,000 are given to JJ and RR, respectively IV. Balance is to be divided equally 1. How much is the net increase/(decrease) in JJ's capital account during 2020? 2. How much is the net increase/(decrease) in RR's capital account during 2020?
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