On January 1,20X9,Mr.Blue and Mr.Grey each contributed $100,000 to form the B&G general partnership.Their partnership agreement states that they will each receive a 50% profits and loss interest.The partnership agreement also provides that Mr.Blue will receive an annual $36,000 guaranteed payment.B&G began business on January 1,20X9.For its first taxable year,its accounting records contained the following information.
The $3,000 of interest was paid on a $60,000 loan made to B&G by Key Bank on June 30,20X9.B&G repaid $10,000 of the loan on December 15,20X9.Neither of the partners received a cash distribution from B&G in 20X9.
Complete the following table related to Mr.Blue's interest in B&G partnership:

Question

On January 1,20X9,Mr.Blue and Mr.Grey each contributed $100,000 to form the B&G general partnership.Their partnership agreement states that they will each receive a 50% profits and loss interest.The partnership agreement also provides that Mr.Blue will receive an annual $36,000 guaranteed payment.B&G began business on January 1,20X9.For its first taxable year,its accounting records contained the following information.
  The $3,000 of interest was paid on a $60,000 loan made to B&G by Key Bank on June 30,20X9.B&G repaid $10,000 of the loan on December 15,20X9.Neither of the partners received a cash distribution from B&G in 20X9.
Complete the following table related to Mr.Blue's interest in B&G partnership:

Quizplus · Accepted Answer

The Answer of On January 1,20X9,Mr.Blue and Mr.Grey each contributed $100,000 to form the B&G general partnership.Their partnership agreement states that they will each receive a 50% profits and loss interest.The partnership agreement also provides that Mr.Blue will receive an annual $36,000 guaranteed payment.B&G began business on January 1,20X9.For its first taxable year,its accounting records contained the following information.
  The $3,000 of interest was paid on a $60,000 loan made to B&G by Key Bank on June 30,20X9.B&G repaid $10,000 of the loan on December 15,20X9.Neither of the partners received a cash distribution from B&G in 20X9.
Complete the following table related to Mr.Blue's interest in B&G partnership: