James, Keller, and Rivers have the following capital balances; $48,000, $70,000 and $90,000 respectively. Because of a cash shortage James invests an additional $12,000 on June 1st. Each partner withdraws $1,000 per month. James, Keller, and Rivers receive a salary of $13,000, $15,000 and $20,000, respectively, for work done during the year. Each partner receives interest of 8% on their weighted average capital balance without regard to normal drawings. Any remaining profits are split 20%, 30%, and 50% respectively. The net income for the year is $30,000. What are the ending capital balances for each partner?

Capital balances of each partners

                                 James          Keller             River

opening balance      $48,000      $70,000      $90,000

Additional Capital      12,000

Salary                        13,000          15,000         20,000

Interest on capital     4,400            5,600         7200

Drawings                  (12,000)          (12,000)      (12,000)

share of loss            (7040)             (10560)      (17600)

closing balance         58,360           68,040     87,600

Explanation:

1. Interest on capital is based on weighted average capital balance without regard to normal drawings

James    =( 8% * 48,000) + ( 8%* 12,000 * 7/12) = $4,400

on the additional capital invested by James, interest on capital will be calculated for 7months

Keller =  8% * 70,000  =  $5,600

River =  8% * 90,000 = 7200

Appropriation

Net income                                                             $30,000

Interest on capital(4400 + 5600+7200) 17,200

salary (13,000+15000+20000)               48,000     (65,200)

share of loss :     James                          7,040

                           keller                          10,560

                          River                            17600           35,200

answer; ///i believe the answer is (d) procedures to control the quailty of your product;

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know