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:

Due to a cash shortage, Alford invests an additional $8,000 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, $18,000; Beeson, $25,000; and Carlton, $8,000.

∙ Each partner is credited with interest equal to 10 percent of the average monthly capital balance for the year without regard for normal drawings.

∙ Any remaining profit or loss is allocated 4:2:4 to Alford, Beeson, and Carlton, respectively. The net income for 2024 is $23,600. Each partner withdraws the allotted amount each month.

Prepare a schedule showing calculations for the partners’ 2024 ending capital balances.

Transcribed Image Text:

Alford.... Beeson. Carlton... $60,000 40,000 20,000