Fox, Greg, and Howe are partners with average capital balances during 20X1 of $120,000, $60,000, and $40,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of $30,000 to Fox and $20,000 to Howe, the residual profit or loss is divided equally. In 20X1 the partnership sustained a $33,000 loss before interest and salaries to partners. By what amount should Fox's capital account change?
A. $7,000 increase
B. $11,000 decrease
C. $35,000 decrease
D. $42,000 increase
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Fox, Greg, and Howe are partners with average capital balances during 20X1 of $120,000, $60,000, and $40,000, respectively. Partners ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Yates Co. uses the allowance method to account for bad debts. At the end of the period, Yate's unadjusted trial balance shows an accounts receivable balance of $10,000; allowance for doubtful accounts balance of $400 (credit); and sales of $500,000.
Answers (1)
Tamara Tools, Inc. wishes to earn a 30% return on its $100,000 investment in equipment used to produce T-squares for carpenters. Based on estimated sales of 20,000 T-square tools next year, the costs per unit would be as follows:Variable cost$15.
Answers (1)
Indicate whether each of the following statements is true or false. 1. The corporation is an entity separate and distinct from its owners. select between True and False 2.
Answers (1)
Bonner Metals wants to issue new 20-year bonds. The company currently has 8.5 percent bonds on the market that sell for $994, make semiannual payments, and mature in 7 years.
Answers (1)
Lenders are prohibited from
Answers (2)
New Questions in Business
What is especially difficult when shooting high-definition video?
Answers (1)
When defining its market segments, the xyz company identifies groups based on characteristics such as age, gender, income, and education. what type of market segmentation is this?
Answers (1)
Under which agricultural career pathway does horticulture fall? A. plant systems B. animal systems C. environmental service systems D. agribusiness systems
Answers (1)
What should be your first step if you have a complaint that you think violates your consumer rights? A) Send a letter or e-mail to the company's headquarters. B) Contact the seller, remain calm, and state the problem.
Answers (1)
Place the following events in the order they might occur once rent control is implemented in a crowded, impoverished neighborhood. a. Property owners cannot afford to maintain buildings properly. b.
Answers (2)