Question

The capital accounts of Hawk and Martin have balances of $160,000 and $140,000, respectively, on January 1, the beginning of the current fiscal year. On April 10, Hawk invested an additional $10,000. During the year, Hawk and Martin withdrew $86,000 and $68,000, respectively, and net income for the year was $258,000. The articles of partnership make no reference to the division of net income. Based on this information, the statement of partners' equity would show what amount in the capital account for Martin on December 31?

Answer 1

Answer:

$213,000

Explanation:

We will figure out first Hawk's share of profit to reach the capital account is shown below:-

Hawk's share of profit = $258,000 ÷ 2

= $129,000

Capital account of Hawk as on December 31 = Opening Balance + Capital Introduced + Profit Share - Drawings

= $160,000 + $10,000 + $129,000 - $86,000

= $213,000

So, we have got the answer after solve the below formula.