There are three partners in TGR Enterprises: Tracey, Gregory and Rodgers. At the end of the year, the partners' capital accounts were in the ratio of 2:1:2, respectively. Compute the ending capital balances of the three partners.
The following information is available on TGR Enterprises, a partnership, for the most recent fiscal year:
A) Tracey = $108,000; Gregory = $54,000; Rodgers = $108,000.
B) Tracey = $90,000; Gregory = $90,000; Rodgers = $90,000.
C) Tracey = $204,000; Gregory = $102,000; Rodgers = $204,000.
D) Tracey = $84,000; Gregory = $102,000; Rodgers = $84,000.
E) Tracey = $60,000; Gregory = $30,000; Rodgers = $60,000.
A) Tracey = $108,000; Gregory = $54,000; Rodgers = $108,000.
Explanation: Ending Partnership Capital = Beginning Partnership Capital + Partnership Net Income + Additional Investments - Withdrawals by Partners
Ending Partnership Capital = $180,000 + $150,000 + $60,000 - $120,000 = $270,000 Based on the partners ending capital balances in the ratio of 2:1:2, the partners would have the following ratios: Tracey has 2/5 of the total, Gregory has 1/5 of the total and Rodgers has 2/5 of the total. Therefore, Tracey and Rodgers have ending balances of $108,000 ($270,000 * 2/5) and
Gregory has an ending balance of $54,000 ($270,000 * 1/5).
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