Jordon and heidi share income equally. for the current year, the partnership net income is $40,000. jordon made withdrawals of $14,000, and heidi made withdrawals of $15,000. at the beginning of the year, the capital account balances were: jordon, capital, $40,000; heidi, capital, $58,000. jordon's capital account balance at the end of the year is

Question

Ali Ortiz

Business

20 August, 12:51

Jordon and heidi share income equally. for the current year, the partnership net income is $40,000. jordon made withdrawals of $14,000, and heidi made withdrawals of $15,000. at the beginning of the year, the capital account balances were: jordon, capital, $40,000; heidi, capital, $58,000. jordon's capital account balance at the end of the year is

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Sawyer Ingram · Answer 1

Given:

Jordon and Heidi share income equally.

partnership net income is $40,000

Jordon made withdrawals of $14,000

Heidi made withdrawals of $15,000

beginning of the year, the capital account balances were: jordon, $40,000; heidi, $58,000

Jordon Heidi

Beginning Balance 40,000 58,000

Add: Net Income 50:50 20,000 20,000

less: Withdrawals (14,000) (15,000)

Ending Balance 46,000 63,000

Jordon's capital account balance at the end of the year is $46,000.00

Profit and loss is distributed equally between the partners. However, if the problem does not state how the profit or losses will be distributed, it will be distributed according to the proportion of their capital balances.