What is the balance in cartwrights capital account

Assignment Help Cost Accounting

Reference no: EM132478

Question:

Partnership starts its first year with the following capital balances:

Arthur, Capital $ 36,000

Baxter, Capital 46,000

Cartwright, Capital 56,000

The articles of partnership stipulate that gains and losses be assigned in the subsequent manner:

Each partner is allocated interest equal to 8 % of the starting capital balance.
Baxter is allocated compensation of $16,000 per year.
Any remaining profits and losses are allocated on a 3:3:4 basis, correspondingly.
Each partner is allowed to withdraw up to $5,000 cash per year.

Consider that the net income is $46,000 and that each partner withdraws the maximum amount allowed, what is the balance in Cartwright's capital account at the end of that year?

Reference no: EM132478

Questions Cloud

Purpose the cash flows from the operating activities : Purpose the cash flows from the operating activities

Determine payout ratio and the return on common stock equity : Determine the payout ratio and the return on common stock equity.

Write down an account class : Write down an Account Class.

Outline work-related musculoskeletal risks : Outline four of the tools used in assessing work-related musculoskeletal risks

What is the balance in cartwrights capital account : What is the balance in Cartwright's capital account at the end of that year?

Utilize server manager to install dns role : Utilize Server Manager to install DNS role

Evaluate the npv of the given case study : Evaluate the NPV of the given case study

What is mno : What is MNO.

What is the npv if the discount rate is 15.30% : What is the NPV if the discount rate is 15.30% and Evaluate Capital's after-tax WACC

Reviews

Write a Review

Required(*) Message

Cost Accounting Questions & Answers

Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

Prepare revenues budget

Prepare Revenues budget and Production budget in units

Effect of exchange rate changes on cash and cash

Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

Accounting for bad debt expense

Accounting and partnership problems

Accounting and Partnership problems

Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages