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:
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 | $39,150 |
| Ben Testerman | 74,250 |
The following additional partner transactions took place during the year:
1. In early January, Randy Campbell is admitted to the partnership by contributing $21,600 cash for a 16% interest.
2. Net income of $170,000 was earned in 20Y5. 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.
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.
| 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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