Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2018, capital balances were as follows:
Due to a cash shortage, Purkerson invests an additional $8,000 in the business on April 1, 2018. Each partner is allowed to withdraw $1,000 cash each month. The partners have used the same method of allocating profits and losses since the business’s inception: ∙ Each partner is given the following compensation allowance for work done in the business: Purkerson, $18,000; Smith, $25,000; and Traynor, $8,000. ∙ Each partner is credited with interest equal to 10 percent of the average monthly capital balance for the year without regard for normal drawings. ∙ Any remaining profit or loss is allocated 4:2:4 to Purkerson, Smith, and Traynor, respectively. The net income for 2018 is $23,600. Each partner withdraws the allotted amount each month. What are the ending capital balances for 2018?
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