The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows:$73,440101,520Ben TestermanThe following additional partner transactions took place during the year:1. In early January, Randy Campbell is admitted to the partnership by contributing $41,040 cash for a 19% interest.Dennis Overton2. Net income of $280,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $60,000 for the year. The threepartners agree to an income-sharing ratio equal to their capital balances after admitting Campbell.3. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income.Prepare a statement of partnership equity for the year ended December 31, 20Y5. If an amount box does not require an entry, leave it blank.Angel Investor AssociatesStatement of Partnership EquityFor the Year Ended December 31, 20Y5Ben Testerman,CapitalBalances, January 1, 20Y5Admission of RandyCampbellSalary allowanceRemaining incomePartner withdrawalsBalances, December 31,20Y5Dennis Overton,Capital$Randy Campbell,Capital0000Total PartnershipCapital

A Partnership is a kind of business where a formal agreement between two or more people is made who…

ennis Overton $73,440 en Testerman 101,520 e following additional partner transactions took place during the year: In early January, Randy Campbell is admitted to the partnership by con Net income of $280,000 was earned in 20Y5. In addition, Dennis Overt rtners agree to an income-sharing ratio equal to their capital balances a The partners' withdrawals are equal to half of the increase in their capit epare a statement of partnership equity for the year ended December 31 Angel Investor A

ennis Overton $73,440 en Testerman 101,520 e following additional partner transactions took place during the year: In early January, Randy Campbell is admitted to the partnership by con Net income of $280,000 was earned in 20Y5. In addition, Dennis Overt rtners agree to an income-sharing ratio equal to their capital balances a The partners' withdrawals are equal to half of the increase in their capit epare a statement of partnership equity for the year ended December 31 Angel Investor A

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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