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 S 57,240 69,960 Ben Testerman The following additional partner transactions took place during the year: In early January, Randy Campbell is admitted to the partnership by contributing $31,800 cash for a 20% interest. Net income of $200,000 was earned in 2015. In addition, Dennis Overton received a salary allowance of $50,000 for the year. The three partners agree to an income - sharing ratio equal to their capital balances after admitting Campbell. 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, 20 Y5 Line Item Description Balances. January 1, 2015 Admission of Randy Campbell Salary allowance Remaining income Partner withdrawals Balances, December 31, 20 Y5 S Dennis Ben Overton. Testerman, Campbell, Capital s
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 S 57,240 69,960 Ben Testerman The following additional partner transactions took place during the year: In early January, Randy Campbell is admitted to the partnership by contributing $31,800 cash for a 20% interest. Net income of $200,000 was earned in 2015. In addition, Dennis Overton received a salary allowance of $50,000 for the year. The three partners agree to an income - sharing ratio equal to their capital balances after admitting Campbell. 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, 20 Y5 Line Item Description Balances. January 1, 2015 Admission of Randy Campbell Salary allowance Remaining income Partner withdrawals Balances, December 31, 20 Y5 S Dennis Ben Overton. Testerman, Campbell, Capital s
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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 S
57,240 69,960 Ben Testerman The following additional partner transactions took place during the year: In early
January, Randy Campbell is admitted to the partnership by contributing $31,800 cash for a 20% interest. Net
income of $200,000 was earned in 2015. In addition, Dennis Overton received a salary allowance of $50,000
for the year. The three partners agree to an income - sharing ratio equal to their capital balances after admitting
Campbell. 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, 20 Y5 Line Item Description Balances. January 1, 2015 Admission of Randy
Campbell Salary allowance Remaining income Partner withdrawals Balances, December 31, 20 Y5 S Dennis
Ben Overton. Testerman, Campbell, Capital s
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