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Question Content Area The partnership of Miner Company began operations on January 1, with contributions as follows: Waverley $35,000 Marquez 40,000 The following additional partner
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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.
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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