The partnership of Miner Company began operations on January 1, with contributions as follows: Waverley $35,000 Marquez 40,000 The following additional partner transactions took place during the year: In early January, Houston is admitted to the partnership by contributing $25,000 cash for a 25% interest. Net income of $160,000 was earned. In addition, Waverley received a salary allowance of $30,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Houston. The partners' withdrawals are equal to half of their respective distributions of income after salary (i.e., half their respective portions of the $130,000). Required: Prepare a statement of partnership equity for the year ended December 31. If an amount box does not require an entry, leave it blank. Miner CompanyStatement of Partnership EquityFor the Year Ended December 31 Waverley, Capital Marquez, Capital Houston, Capital Total Partnership Capital Partnership capital, January 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 Admission of Houston fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Salary allowance fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 Remaining income fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16 Less: Partner withdrawals fill in the blank 17 fill in the blank 18 fill in the blank 19 fill in the blank 20 Partnership capital, December 31 $fill in the blank 21 $fill in the blank 22 $fill in the blank 23 $fill in the blank 24
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
The
| Waverley | $35,000 |
| Marquez | 40,000 |
The following additional partner transactions took place during the year:
- In early January, Houston is admitted to the partnership by contributing $25,000 cash for a 25% interest.
- Net income of $160,000 was earned. In addition, Waverley received a salary allowance of $30,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Houston.
- The partners' withdrawals are equal to half of their respective distributions of income after salary (i.e., half their respective portions of the $130,000).
Required:
Prepare a statement of partnership equity for the year ended December 31. If an amount box does not require an entry, leave it blank.
Miner CompanyStatement of Partnership EquityFor the Year Ended December 31
Waverley, Capital |
Marquez, Capital |
Houston, Capital |
Total Partnership Capital |
|
| Partnership capital, January 1 | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 | $fill in the blank 4 |
| Admission of Houston | fill in the blank 5 | fill in the blank 6 | fill in the blank 7 | fill in the blank 8 |
| Salary allowance | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
| Remaining income | fill in the blank 13 | fill in the blank 14 | fill in the blank 15 | fill in the blank 16 |
| Less: Partner withdrawals | fill in the blank 17 | fill in the blank 18 | fill in the blank 19 | fill in the blank 20 |
| Partnership capital, December 31 | $fill in the blank 21 | $fill in the blank 22 | $fill in the blank 23 | $fill in the blank 24 |
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