Chapter 12 Partnership Financial Statements 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. Part 3 Royce joins the partnership and invests $12,000. Prepare the Partnership Equity Statement including this new partner. 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. Chapter 12 Name Part 1 Ries Bax Beginning Balance Initial Investment Ending Balance Part 2 Ries Bax Beginning Balance Additional Investment Income Distribution Partner Withdrawals Ending Balance Part 3 Ries Bax Royce Beginning Balance Initial Investment Ending Balance Part 4 Ries Bax Royce Beginning Balance Additional Investment Interest Allowance (10%) Partner's Salary Income Distribution Partner Withdrawals Ending Balance