Chapter :12 In-Class Homework Problem Part 1 Ries and Bax create a partnership. Each invests $10,000 and they agree to split income equally. Prepare an initial Partnership Equity Statement. Part 2. The partnership earns $15,000 income the first year. Ries withdraws $4,000 and Bax withdraws $7,000. Prepare the end-of year Partnership Equity Statement. Part 3 Royce joins the partnership and invests $12,000. Prepare the Partnership Equity Statement including this new partner. Part 4. The partners agree to take a 10% interest allowance on their beginning year capital balances. Additionally, Bax and Royce will receive salaries of $5,000 each. The partnership earns $40,000 income by the end of the year. The Partners additional withdrawals at year end are: Reis - $5,000, Bax - $12,500, and Royce - $11,000. Prepare the end-of year Partnership Equity Statement.Part 1 Part2 Part3 Part4 Beginning Balance Initial Investment Ending Balance Beginning Balance Additional Investment Income Distribution Partner Withdrawals Ending Balance Beginning Balance Initial Investment Ending Balance Beginning Balance Additional Investment Interest Allowance (10%) Partner's Salary Income Distribution Partner Withdrawals Ending Balance Ries Ries Bax Royce