Partner bonuses, statement of partnership equity The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows: Dennis Overton $34,880 54,500 Ben Testerman The following additional partner transactions took place during the year: 1. In early January, Randy Campbell is admitted to the partnership by contributing $19,620 cash for a 18% interest. 2. Net income of $140,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $30,000 for the year. The three partners 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 Associates Statement of Partnership Equity For the Year Ended December 31, 20Y5 Balances, January 1, 20Y5 Admission of Randy Campbell Salary allowance Remaining income Partner withdrawals Balances, December 31, 20Y5 Check My Work Dennis Overton, Capital Ben Testerman, Capital Randy Campbell, Capital Total Partnership Capital 34,880 ✔ $ 54,500 ✔ 89,380 30,000 19,620 ✓ 19,620 30,000 ✓ Previous
Partner bonuses, statement of partnership equity The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows: Dennis Overton $34,880 54,500 Ben Testerman The following additional partner transactions took place during the year: 1. In early January, Randy Campbell is admitted to the partnership by contributing $19,620 cash for a 18% interest. 2. Net income of $140,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $30,000 for the year. The three partners 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 Associates Statement of Partnership Equity For the Year Ended December 31, 20Y5 Balances, January 1, 20Y5 Admission of Randy Campbell Salary allowance Remaining income Partner withdrawals Balances, December 31, 20Y5 Check My Work Dennis Overton, Capital Ben Testerman, Capital Randy Campbell, Capital Total Partnership Capital 34,880 ✔ $ 54,500 ✔ 89,380 30,000 19,620 ✓ 19,620 30,000 ✓ Previous
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question
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Transcribed Image Text:Partner bonuses, statement of partnership equity
The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows:
Dennis Overton
$34,880
54,500
Ben Testerman
The following additional partner transactions took place during the year:
1. In early January, Randy Campbell is admitted to the partnership by contributing $19,620 cash for a 18% interest.
2. Net income of $140,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $30,000 for the year. The three partners 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 Associates
Statement of Partnership Equity
For the Year Ended December 31, 20Y5
Dennis Overton, Capital Ben Testerman, Capital Randy Campbell, Capital
34,880
54,500
Balances, January 1, 20Y5
Admission of Randy Campbell
Salary allowance
Remaining income
Partner withdrawals
Balances, December 31, 20Y5
Check My Work
30,000
19,620
Total Partnership Capital
$ 89,380
19,620
0000
30,000
Previous
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