Accounting question plz help

timer Asked: Jan 29th, 2016

Question description

Partner Bonuses, Statement of Partners' Equity

The partnership of Angel Investor Associates began operations on January 1, 2014, with contributions from two partners as follows:

[img height="38" width="305" src="">

1.  In early January, Randy Campbell is admitted to the partnership by contributing $75,000 cash for a 20% interest.

2.  Net income of $150,000 was earned in 2014. In addition, Dennis Overton received a salary allowance of $40,000 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.

Partner Bonuses, Statement of Partners' Equity

Prepare a statement of partnership equity for the year ended December 31, 2014. If an amount is zero, enter in "0".

 Angel Investor Associates 

 Statement of Partnership Equity 

 For the Year Ended December 31, 2014 

 Dennis Overton, Capital 

 Ben Testerman, Capital 

 Randy Campbell, Capital 

 Total Partnership Capital 

 Partnership capital, January 1, 2014 

 Admission of Randy Campbell 




 Salary allowance 



 Remaining income 





 Less: Partner withdrawals 





 Partnership capital, December 31, 2014 

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