The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners
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Question:
The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows:
Dennis Overton | $145,000 |
Ben Testerman | 145,000 |
The following additional partner transactions took place during the year:
1. | In early January, Randy Campbell is admitted to the partnership by contributing $72,500 cash for a 20% interest. |
2. | Net income of $131,500 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $32,800 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. For those boxes in which you must enter negative numbers, use a minus sign.
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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