Any help is greatly appreciated and will be rated asap. Thanks Jagger and Richar

Question

Any help is greatly appreciated and will be rated asap. Thanks

Jagger and Richards formed a partnership, investing $3,600,000 and $2,100,000 respectively. The partnership agreement calls for a return of 10% interest on their original investment; Richards is to have a salary of $500,000 per year, and Jagger does not draw a salary. The remainder is divided in the ratio of 3:2. net income of the partnership for the year is $4,200,000.There was a withdrawal by Richards of $100,000 please prepare a statement of Partner

Explanation / Answer

Equity of partnership firm = 3600000+2100000-100000+4200000 = 9800000answer Equity of Jagger = 3600000 + 4200000*3/5 = 6120000 answer Equity for Richards = 2100000 - 100000 + 4200000*2/5 = 3680000 answer

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.