Norr and Caylor established a partnership on January Norr invested cash of $ and Caylor invested $ in cash and equipment with a book value of $ and fair value of $ For both partners, the beginning capital balance was to equal the initial investment. Norr and Caylor agreed to the following procedure for sharing profits and losses:
o interest on the yearly beginning capital balance
o $ per hour of work that can be billed to the partnership's clients
o the remainder divided in a : ratio
The Articles of Partnership specified that each partner should withdraw no more than $ per month, which is accounted as direct reduction of that partners capital balance.
For the partnership's income was $ Norr had billable hours, and Caylor worked billable hours. In the partnership's income was $ and Norr and Caylor worked and billable hours respectively. Each partner withdrew $ per month throughout and
o Determine the balance in both capital accounts at the end of
