Reference no: EM132795812

Dawson, Emerson, and Franklin have operated a bookstore for a number of years as a partnership. At the beginning of 2019, capital balances were as follows:

• Dawson $80,000
• Emerson $50,000
• Franklin $30,000

1. Due to a cash shortage, Dawson invests an additional $12,000 in the business on April 1, 2019.
2. Each partner is given the following compensation allowance for work done in the business: Dawson, $20,000; Emerson, $30,000; and Franklin, $10,000.
3. Each partner is credited with interest equal to 10 percent of the average monthly capital balance for the year without regard for normal drawings.
4. Any remaining profit or loss (after compensation and interest) is allocated 4:2:4 to Dawson, Emerson, and Franklin, respectively.
5. The partnership profit for 2019 is $50,000 (before compensation and interest).
6. Each partner is allowed to withdraw $1,000 cash each month and each partner withdraws this allotted amount each month during 2019.

Problem 1: What are the ending capital balances for 2019?