Table 12-4
Jana Jones, Jill Jacks, and Carolle Cann formed a partnership by investing $250,000, $200,000, and $150,000, respectively. They agreed to share profits as follows:
1) An annual allocation for the service each partner contributes to the partnership: $40,000 to Jana, $20,000 to Jill, and $30,000 to Carolle.
2) Interest on their original capital balances of 10%.
3) Any remainder equally.
-Refer to Table 12-4.If the partnership earns a profit of $150,000 its first year,then Jana's capital account would be credited for:

Question

Table 12-4
Jana Jones, Jill Jacks, and Carolle Cann formed a partnership by investing $250,000, $200,000, and $150,000, respectively. They agreed to share profits as follows:
1) An annual allocation for the service each partner contributes to the partnership: $40,000 to Jana, $20,000 to Jill, and $30,000 to Carolle.
2) Interest on their original capital balances of 10%. 
3) Any remainder equally.
-Refer to Table 12-4.If the partnership earns a profit of $150,000 its first year,then Jana's capital account would be credited for:

Quizplus · Accepted Answer

Jana's share of the profit would be calculated as follows:
-Jana: $40,000 allocation + ($250,000 x 10% interest) + ($150,000/$600,000 x $80,000 remainder) = $40,000 + $25,000 + $20,000 = $65,000. Therefore, her capital account would be credited for $65,000.

Table 12-4 Jana Jones, Jill Jacks, and Carolle Cann Formed a Partnership