Partner bonuses, statement of partnership equity The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows: Dennis Overton$86,730 Ben Testerman42,480 The following additional partner transactions took place during the year: 1.  In early January, Randy Campbell is admitted to the partnership by contributing $47,790 cash for a 27% interest. 2.  Net income of $230,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $50,000 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. Prepare a statement of partnership equity for the year ended December 31, 20Y5. If an amount box does not require an entry, leave it blank. Angel Investor Associates Statement of Partnership Equity For the Year Ended December 31, 20Y5   Dennis Overton, Capital Ben Testerman, Capital Randy Campbell, Capital Total Partnership Capital Balances, January 1, 20Y5 $ $ $ $ Admission of Randy Campbell         Salary allowance         Remaining income         Partner withdrawals         Balances, December 31, 20Y5 $

Question

Partner bonuses, statement of partnership equity

The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows:

Dennis Overton$86,730

Ben Testerman42,480

The following additional partner transactions took place during the year:

1.  In early January, Randy Campbell is admitted to the partnership by contributing $47,790 cash for a 27% interest.

2.  Net income of $230,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $50,000 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.

Prepare a statement of partnership equity for the year ended December 31, 20Y5. If an amount box does not require an entry, leave it blank.

Angel Investor Associates
Statement of Partnership Equity
For the Year Ended December 31, 20Y5

 

Dennis Overton, Capital Ben Testerman, Capital Randy Campbell, Capital Total Partnership Capital
Balances, January 1, 20Y5 $ $ $ $
Admission of Randy Campbell        
Salary allowance        
Remaining income        
Partner withdrawals        
Balances, December 31, 20Y5 $

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Final Accounts for Partnership

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