James, Keller, and Rivers have the following capital balances; $48,000, $70,000 and $90,000 respectively. 

Because of a cash shortage James invests an additional $12,000 on June 1st.

 Each partner withdraws $1,000 per month. James, Keller, and Rivers receive a salary of $13,000, $15,000 and $20,000, respectively, for work done during the year. Each partner receives interest of 8% on their weighted average capital balance without regard to normal drawings. 

Any remaining profits are split 20%, 30%, and 50% respectively. The net income for the year is $30,000. What are the ending capital balances for each partner?

Answer rating: 100% (QA)

Interest 8 Salary James 4400 below 13000 Keller 5600 15000 Rivers 7200 20... View the full answer