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 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