Problem 12-02A a-c (Part Level Submission) (Video)

At the end of its first year of operations on December 31, 2020, NBS Companys accounts show the following.

Partner		Drawings		Capital
Art Niensted		$23,000		$48,000
Greg Bolen		14,000		30,000
Krista Sayler		10,000		25,000

The capital balance represents each partners initial capital investment. Therefore, net income or net loss for 2020 has not been closed to the partners capital accounts. To record the division of net income for the year 2020 under each of the following independent assumptions.

1.		Net income is $30,000. Income is shared 6:3:1.
2.		Net income is $40,000. Niensted and Bolen are given salary allowances of $15,000 and $10,000, respectively. The remainder is shared equally.
3.		Net income is $19,000. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $15,000 salary allowance. The remainder is shared equally.

(c) Your answer is partially correct. Try again. Prepare a partners' capital statement for the year under assumption (3) above. (List items that increase partners capital first.) NBS COMPANY Partners' Capital Statement For the Year Ended December 31, 2020 Art Niensted Greg Bolen Krista Sayler Total Capital, January 1 48,000 30,000 25,000 103,000 Add Net Income / (Loss) 7,700 5,900 5,400 19,000 Less v Drawings 23,000 14,000 10,000 47,000 Capital, December 31