The partner Dennis Overton Stor Associates began operations of January 1, 201 contributions from two parchers as $35,340 59,280 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 $19,380 cash for a 17% interest. 2. Net income of $150,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $30,000 for the yea 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.
The partner Dennis Overton Stor Associates began operations of January 1, 201 contributions from two parchers as $35,340 59,280 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 $19,380 cash for a 17% interest. 2. Net income of $150,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $30,000 for the yea 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
H-7
Transcribed Image Text:$35,340
Ben Testerman
59,280
The following additional partner transactions took place during the year:
1. In early January, Randy Campbell is admitted to the partnership by contributing $19,380 cash for 17% interest.
Dennis Overton
2. Net income of $150,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $30,000 for the yea
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,
Angel Investor Associates
Statement of Partnership Equity
For the Year Ended December 31, 20Y5
Line Item Description
Balances, January 1, 20Y5
Admission of Randy Campbell
Salary allowance
Remaining income
Partner withdrawals
Balances, December 31, 20Y5
Dennis
Ben
Randy
Overton, Testerman, Campbell,
Capital
Capital
Capital
$
Total
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