REFERENCE: Ref.14_01 Cleary,Wasser,and Nolan Formed a Partnership on January 1,2007,with Investments of Investments

question 32

Multiple Choice

REFERENCE: Ref.14_01
Cleary,Wasser,and Nolan formed a partnership on January 1,2007,with investments of $100,000,$150,000,and $200,000,respectively.For division of income,they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of $10,000 to Wasser,and (3) sharing the remainder of the income or loss in a ratio of 20% for Cleary,and 40% each for Wasser and Nolan.Net income was $150,000 in 2007 and $180,000 in 2008.Each partner withdrew $1,000 for personal use every month during 2007 and 2008.
-What was Nolan's capital balance at the end of 2007?

• A)$200,000.
• B)$224,000.
• C)$238,000.
• D)$246,000.
• E)$254,000.

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Definitions:

Customer Balances

The amounts owed by customers to a business for goods or services provided on credit.

Specified Date Range

A distinct period marked by a starting date and an ending date, often used for reporting or analysis purposes.

Revenues By Customer

The segmentation and reporting of a company’s sales based on individual customers or customer groups, used for sales tracking and customer relationship management.

Cash Receipts Journal

A dedicated journal used to record all cash inflows or receipts a business receives.