16
APPENDIX
Balance as of 1/1/93 Parson Handler Hahn Sargent Tilton
Permanent capital1 $128,244 $119,084 --- $ 27,000 $110,000
Temporary capital2 42,439 50,023 $29,867 (61,657) 21,880
1993
Undistributed (42,439) (50,023) (29,867) --- (21,880)
earnings
Draws3 (136,275) (111,150) (74,250) (30,000) (38,089)
Payments for (14,384) (7,451) (2,991) (8,491) (4,169)
partners4
Loan Interest/ (5,051) (19,313) --- --- ---
Principal
Retirement plan (9,934) --- --- (5,600) ---
Capital withdrawal --- --- --- --- (22,000)
Payment --- 3,299 --- --- ---
Loan repayment --- --- --- --- (88,000)
1994
Distributions (93,509) --- --- (27,000) ---
Draws (281,500) --- --- --- ---
Payments for (652) --- --- (838) ---
partners
Loan Interest/ (43,074) (12,429) --- --- ---
Principal
Retirement plan (9,934) --- --- --- ---
Capital repayment --- (31,868) --- --- ---
Assumption of loan --- (71,603) --- --- ---
1995
Payments for --- (432) --- (102) ---
partners
K-1 Allocation - 1993142,542 (37,380) (20,636) 19,733 (8,005)
K-1 Allocation - 1994282,769 (17,407) 1,526 1,485 4,045
12/31/94
Capital account balance 5(30,823) 6(186,739) (96,351)(85,470) 7(46,138)
1 The partner’s contribution to the capital of the firm.
2 This account was credited or charged with the partner’s share of W&R’s profit or
loss. After closing out the nominal accounts, i.e., Draws, Payments for partners, Retirement
plan contributions, the balance was available for withdrawal by the partner.
3 Advances to the partners. The agreement characterizes draws as advances against the
current year’s distributable net income.
4 Items for a partner’s personal benefit, such as health, life and disability insurance
premiums, personal telephone calls, postage, photocopies, personal travel, professional
subscriptions.
5 We note that the stipulated capital account balance of ($30,823) is not the
calculated amount of ($40,758) from the table. We assume this difference of $9,935 is due to
an extra charge to Parson’s retirement plan.
6 We note that the stipulated capital account balance of ($186,739) varies from the
actual calculated amount of ($186,650). The parties do not explain this difference.
7 We note that the stipulated capital account balance of ($46,138) varies from the
actual calculated amount of ($46,218). The parties do not explain this difference.
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