Table 12-3
Mariah and Brittney have formed a partnership and invested $140,000 and $160,000, respectively. They have agreed to share profits as follows:
1) The first $30,000 is to be allocated according to their original capital contributions to the partnership.
2) Mariah is to receive $40,000 and Brittney is to receive $45,000 for service.
3) The remainder is to be allocated 5:3, respectively.
-Refer to Table 12-3.If the partnership incurred a loss of $18,000,Mariah's capital account would be ________,and Brittney's capital account would be ________.

Question

Table 12-3
Mariah and Brittney have formed a partnership and invested $140,000 and $160,000, respectively. They have agreed to share profits as follows:
1) The first $30,000 is to be allocated according to their original capital contributions to the partnership. 
2) Mariah is to receive $40,000 and Brittney is to receive $45,000 for service.
3) The remainder is to be allocated 5:3, respectively.
-Refer to Table 12-3.If the partnership incurred a loss of $18,000,Mariah's capital account would be ________,and Brittney's capital account would be ________.

Quizplus · Accepted Answer

The partnership incurred a loss of $18,000. This means that the total amount of money in the partnership has decreased by $18,000. Mariah and Brittney's capital accounts will be decreased by their share of the loss. Mariah's share of the loss is $83,125, and Brittney's share of the loss is $49,875.

Table 12-3 Mariah and Brittney Have Formed a Partnership and Invested $140,000