Accounting question plz help

Anonymous
timer Asked: Jan 29th, 2016

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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="http://east.cengagenow.com/ilrn/books/waac25h/images/ch12/waac25h_ch12_ex12_16.gif">

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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