I'm looking for, in good form, a statement of changes in partners capital accounts from January 1, Year 5, to December 31, Year 6. Show your calculations.

Lancaster and Reed are partners in a successful sporting goods store. Their profit and loss sharing agreement stipulates that interest of 10% is to be allowed on beginning capital balances, that annual salaries of $40,000 to Lancaster and $29,000 to Reed are to be paid, and that any remaining profit or loss is to be shared 2:1 between Lancaster and Reed. The January 1, Year 5, condensed balance sheet is shown below: LANCASTER AND REED BALANCE SHEET January 1, Year 5 Assets Cash Inventory Office equipment Other assets net $ 10,000 475,000 25,000 5,000 $515,000 Liabilities Accounts payable Sales tax payable $211,000 9,000 $220,000 Partners' equity Lancaster Reed $190,000 105,000 $295,000 $515,000 During Year 5, the partnership earned $130,000 before partners' salary and interest, and Lancaster and Reed had drawings of $50,000 and $60,000 respectively. On January 1, Year 6, the partnership decided to admit Jackson as a partner with a 25% interest in the partnership for a cash contribution of $125,000. The bonus method was used to admit Jackson. The profit and loss sharing agreement was amended as follows: Interest of 12% on beginning capital. Annual salaries of $40,000 to Lancaster and $31,200 to Reed. Remaining profit or loss to be shared in a 2:1:1 ratio by Lancaster, Reed, and Jackson. The partnership reported profit before partners' interest and salary of $180,000 in Year 6, and each partner withdrew $50,000