Question

erry, a partner in the JSK partnership, begins the year on January 1, 2011 with a capital balance of $20,000. The JSK partnership agreement states that Jerry receives 6% interest on this weighted average capital balance. • On March 1, 2011, when the partnership tax return for 2010 was completed, Jerry's capital account was credited for his share of 2010 profit of $120,000. • Jerry withdrew this amount quarterly, beginning April 1. • On September 1, Jerry's capital account was credited with a special bonus of $60,000 for business he brought to the partnership. What amount of interest will be attributed to Jerry for year 2011 that will go toward his profit distribution for the year? (Use a 360-day year for calculations.)

Answer 1

Answer:

Check the explanation

Explanation:

The amount of interest (Which is calculated as a fraction or percentage of a loan (or savings) balance that is being paid to the borrower on a periodic basis for the privilege of making use of their money. The sum is typically quoted as an annual rate, but the interest can be calculated for some periods that are longer or shorter than one year.) that will be attributed to Jerry for the year 2011 which is supposed to point toward his profit distribution for the year can be seen I the attached image below.