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$86,730 Ben Testerman42,480 The following additional partner transactions took place during the year: 1. In early January, Randy Campbell is admitted to the partnership by contributing $47,790 cash for a 27% interest. 2. Net income of $230,000 was earned in 20Y5. 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. 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 Total Partnership Capital Balances, January 1, 20Y5 $ $ $ $ Admission of Randy Campbell Salary allowance Remaining income Partner withdrawals Balances, December 31, 20Y5 $
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.
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$86,730
Ben Testerman42,480
The following additional partner transactions took place during the year:
1. In early January, Randy Campbell is admitted to the partnership by contributing $47,790 cash for a 27% interest.
2. Net income of $230,000 was earned in 20Y5. 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.
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 | Total Partnership Capital | |
| Balances, January 1, 20Y5 | $ | $ | $ | $ |
| Admission of Randy Campbell | ||||
| Salary allowance | ||||
| Remaining income | ||||
| Partner withdrawals | ||||
| Balances, December 31, 20Y5 | $ |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
