12 greta harriet and ivy have a retail partnership business selling personal compute 4307402
12) Greta, Harriet, and Ivy have a retail partnership business selling personal computers. The partners are allowed an interest allocation of 6% on their average capital. Capital account balances on the first day of each month are used in determining weighted average capital, regardless of additional partner investment or withdrawal transactions during any given month. Withdrawals of capital that are debited to the capital account are used in the average calculation. Partner capital activity for the year was:
Capital accountsGretaHarrietIvy
Jan 1 balance$680,000$500,000$580,000
Feb 12 investment40,000
Mar 26 investment20,000
Apr 20 withdrawal(10,000)
May 8 withdrawal(15,000)(8,000)
Jul 3 investment14,000
Sep 29 investment8,0003,0006,000
Nov 5 investment3,000
Required:
Calculate weighted average capital for each partner, and determine the amount of interest that each partner will be allocated. Round all calculations to the nearest whole dollar.
