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. 10 11 Part 3 Royce joins the partnership and invests $12,000. 12 Prepare the Partnership Equity Statement including this new partner. 13 14 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. 15 16 17 28 19 20 21 22 23 24 25 26 27 28 29 Initial Information Data Worksheet Cha Formulas Data Page Layout Insert Review View Calibri (Body) 14 ' = BI U a. Av E B C D E F er 12 Name 1 Ries Bax Beginning Balance Initial Investment Ending Balance t2 Ries Bax Beginning Balance Additional Investment Income Distribution Partner Withdrawals Ending Balance art 3 Ries Bax Royce Beginning Balance Initial investment Ending Balance 20 21