The partnership agreement of Reid and Simm provides that interest at 10% per year is to...

 

Transcribed Image Text:

The partnership agreement of Reid and Simm provides that interest at 10% per year is to be credited to each partner on the basis of weighted- average capital balances. A summary of Simm's capital account for the year ended December 31, is as follows: Balance, January 1 $140,000 Additional investment, July 1 40,000 Withdrawal, August 1 (15,000) Balance, December 31 165,000 What amount of interest should be credited to Simm's capital account? A. $15,250 В. $16,500 C. $17,250 D. $15,375 The partnership agreement of Reid and Simm provides that interest at 10% per year is to be credited to each partner on the basis of weighted- average capital balances. A summary of Simm's capital account for the year ended December 31, is as follows: Balance, January 1 $140,000 Additional investment, July 1 40,000 Withdrawal, August 1 (15,000) Balance, December 31 165,000 What amount of interest should be credited to Simm's capital account? A. $15,250 В. $16,500 C. $17,250 D. $15,375

Answer rating: 100% (QA)

A 1 Statement showing calculation of interest on capital of S... View the full answer