Janie and Larry are partners,with beginning capital balances of $67,000 and $55,000 respectively.During the year,Janie withdrew $12,000 and Larry withdrew $18,000.The year's net income of $42,000 was distributed $15,000 to Janie and $27,000 to Larry.Calculate the ending balances in the capital accounts.

Question

Quizplus · Accepted Answer

Janie's ending balance = beginning balance - withdrawal + share of net income
Janie's ending balance = $67,000 - $12,000 + $15,000
Janie's ending balance = $70,000

Larry's ending balance = beginning balance - withdrawal + share of net income
Larry's ending balance = $55,000 - $18,000 + $27,000
Larry's ending balance = $64,000

Therefore, the correct answer is B, as Janie's ending balance is $70,000 and Larry's ending balance is $64,000.

Janie and Larry Are Partners,with Beginning Capital Balances of $67,000