Required: Use the grid on the next page to assist you in computing the equity interests and profit and loss sharing relative to the following partnership transactions:

On January 1, 2015, Able, Betty and Cheryl became partners and opened a store called ABC Partnership. Able contributed $500,000, Betty contributed $500,000 and Cheryl contributed $500,000. The partners agreed that they would share in the profits and losses as follows: Able at 50%, Betty at 30% and Cheryl at 20%.

For the year ending December 31, 2015, the partnership had a profit of $2,000,000 and each partner withdrew $100,000 for personal use.

On December 31, 2015, David purchased an interest in the partnership, forming the ABCD Partnership. David contributed $1,000,000 cash in exchange for 25% equity interest and 20% profit and loss sharing.

For the year ending December 31, 2016, the partnership had a profit of $5,000,000 and each partner withdrew $500,000 for personal use.

On December 31, 2016, with the consent and agreement by Able, Betty, and Cheryl, David sold his equity interest to Edward for $2,000,000. Accordingly, Edward assumed Davids role as partner in a new partnership called ABCE Partnership.

For the year ending December 31, 2017, the partnership had a loss of $1,000,000 and each partner withdrew $500,000 for personal use.

On December 31, 2017, Edward retired and the partnership bought his equity interest for $1,000,000. As a result, a new partnership emerged named ABC Partnership.

Date:	Able:	Betty:	Cheryl:	David:	Edward:	Total:
1/1/15 Establishment of Partnership	$500,000	$500,000	$500,000			$1,500,000
2015 Profit
2015 Drawings
12/31/15 Capital Balances
12/31/2015 Admission of David
12/31/15 Capital Balances [Revised]
2016 Profit
2016 Drawings
12/31/16 Capital Balances
12/31/16 Transfer of Davids interest to Edward
12/31/16 Capital Balances [Revised]
2017 Loss
2017 Drawings
12/31/17 Capital Balances
12/31/17 Retirement of Edward
12/31/17 Capital Balances [Final]