Answer:
Partner Capital Drawings
Art Niensted $49,000 $22,900
Greg Bolen 13,600 34,000
Krista Sayler 10,800 23,500
1. Net income is $28,300. Income is shared 6:3:1
$ 28,300/10= $ 2830
Art Niensted gets (6/10 )* $ 28300= $ 16980
Art Niensted New Balance will be after deducting drawings = $ 16980- $ 22,900= ($ 5920)
Greg Bolen gets (3/10 )* $ 28300 = $ 8490
Greg Bolen New Balance will be after deducting drawings =$ 8490 - $ 34000= ($ 25,510)
Krista Sayler gets (1/10 )* $ 28300 = $2830
Krista Sayler New Balance will be after deducting drawings =$2830- $ 23500= ($ 20670)
2. Net income is $39,600. Niensted and Bolen are given salary allowances of $15,200 and $10,300 respectively. The remainder is shared equally
Salary is deducted .
$39,600- $ 15,200- $ 10,300= $ 14,100
$ 14,100/3 = $ 4700
Each partner will get $ 4700 after getting their salary
Art Niensted gets $ 15200 + $4700= $ 19900
Art Niensted New Balance will be $ 19900 - $ 22,900= ($3000)
Greg Bolen gets $ 10,300 + $ 4700= $ 15,000
Greg Bolen New Balance will be $ 15,000- $ 34000= ($19000)
Krista Sayler gets $ 4700
Krista Sayler New Balance will be 4700 - $ 23500= ($ 18,800)
3. Net income is $18,900. Each partner is allowed interest of 10% on beginning capital balances Niensted is given a $14,250 salary allowance. The remainder is shared equally
Calculation of Income = $18900- $14250/3 = $ 4650/3= $1550
Art Niensted = 10 % 0f $49,000 = $ 4900
Greg Bolen = 10 % 0f 13,600 = $ 1360
Krista Sayler = 10 % 0f 10,800 = % 1080
Art Niensted gets $ 4900 + $14250 +1550= $ 20700
Art Niensted New Balance will be after deducting drawings = = $ 20700- 22900= ($2200)
Greg Bolen gets $ 1360+1550 = $ 2910
Greg Bolen New Balance will be after deducting drawings =$ 2910- $ 34000= ( $31090)
Krista Sayler gets $ 1080 +$1550= $ 2360
Krista Sayler New Balance will be after deducting drawings =$ 2360 - $ 23500= ($ 20870)
