Answer:
Capital account for Martin on December 31 is $201,000
Capital account for Hawk on December 31 is $213,000
Total capital for the partnership on December 31 $414,000
Explanation:
If articles of partnership make no reference to the division of net income.then net income will be divided equally among both of them.
Capital account for Martin on December 31
= $140,000 + (-$68,000) + ($258,000 / 2
)
= $140,000 - $68,000 + $129,000
= $201,000
Capital account for Hawk on December 31
= $160,000 + $10,000 + (-$86,000) + ($258,000 / 2
)
= $170,000 - $86,000 + $129,000
= $213,000
Total capital for the partnership on December 31
= Capital account for Hawk (+) Capital account for Martin
= $201,000 + $213,000
= $414,000
