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Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik
Edition 10ISBN: 978-1260575910Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik
Edition 10ISBN: 978-1260575910 Exercise 8
A partnership begins its first year of operations with the following capital balances: 
According to the articles of partnership, all profits will be assigned as follows:
• Winston will be awarded an annual salary of $20,000 with $ 10,000 assigned to Salem.
• The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year.
• The remainder will be assigned on a 5:2:3 basis, respectively.
• Each partner is allowed to withdraw up to $ 10,000 per year.
The net loss for the first year of operations is $20,000 and net income for the subsequent year is $40,000.Each partner withdraws the maximum amount from the business each period.What is the balance in Winston's capital account at the end of the second year
a.$102,600.
b.$104,400.
c.$108,600.
d.$109,200,
According to the articles of partnership, all profits will be assigned as follows:• Winston will be awarded an annual salary of $20,000 with $ 10,000 assigned to Salem.
• The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year.
• The remainder will be assigned on a 5:2:3 basis, respectively.
• Each partner is allowed to withdraw up to $ 10,000 per year.
The net loss for the first year of operations is $20,000 and net income for the subsequent year is $40,000.Each partner withdraws the maximum amount from the business each period.What is the balance in Winston's capital account at the end of the second year
a.$102,600.
b.$104,400.
c.$108,600.
d.$109,200,
Explanation
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Given data can be summarized as below: 
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Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik
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