What are the ending capital balances

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Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2015, capital balances were as follows: Purkerson $ 94,000 Smith 74,000 Traynor 20,000 Due to a cash shortage, Purkerson invests an additional $10,000 in the business on April 1, 2015. Each partner is allowed to withdraw $600 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: Purkerson, $14,000; Smith, $30,000; and Traynor, $4,000. • Each partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for normal drawings. • Any remaining profit or loss is allocated 5:3:2 to Purkerson, Smith, and Traynor, respectively. The net income for 2015 is $27,000. Each partner withdraws the allotted amount each month. What are the ending capital balances for 2015

Reference no: EM131216797

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