The partnership of Angel Investor Associates began operations on January 1, 2045, with contributions from two partners as follows: Dennis Overton $33,500 Ben Testerman 81,740 The following additional partner transactions took place during the year: 1. In early January, Randy Campbell is admitted to the partnership by contributing $18,760 cash for a 14% interest. 2. Net income of $170,000 was earned in 2015. 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, 205. If an amount box does not require an entry leave it blan- Angel Investor Associates Statement of Partnership Equity For the Year Ended December 31, 2015 Dennis Overton, Ben Testerman, Randy Campbell Total Partnership Capital Capital Capital Capital Balances, January 1, 2015 Admission of Randy Campbell Salary allowance Remaining income Partner withdrawals Balances, December 31, 2015 Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, Investing $104,000 and $156,000, respectively, Determine their participation in the year's net income of $295,000 under each of the following independent assumptions: a. No agreement concerning division of net income b. Divided in the ratio of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $34,000 and $48,000, respectively, and the balance divided equally e. Allowance of interest at the rate of 5% on original investments, salary allowances of $34,000 and $48,000, respectively, and the remai divided equally Dawson McDonald a. suo e. Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, Investing $70,000 and $210,000, respectively, Determine their participation in the year's net income of $110,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital Investment, c. Interest at the rate of 5% allowed on original Investments and the remainder divided in the ratio of 2:3, d. Salary allowances of $40,000 and $45,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $40,000 and $45,000, respectively, and the remainder divided equally Dawson McDonald CE OT Instructions Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $174,300 and $58,140, respectively. Elter, with the consent of Santori, selis one-third of his interest to Lonnie Davis Required: Assume the sale occurs on December 31. What entry is required by the partnership if the sales price is (a) 558,100? () $77,100? Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Chart of Accounts CHART OF ACCOUNTS Etter, Santori and Davis General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 111 Petty Cash 112 Accounts Receivable FRP CHART OF ACCOUNTS Etter, Santori and Davis General Ledger ASSETS 110 Cash REVENUE 410 Sales 610 Interest Revenue 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Interest Receivable 115 Notes Receivable 116 Inventory 117 Office Supplies 118 Store Supplies 119 Prepaid Insurance EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 531 Rent Expense 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 120 Land 123 Equipment 124 Accumulated Depreciation-Equipment 129 Asset Revaluations 133 Patent 536 Credit Card Expense LIABILITIES 537 Cash Short and Over 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense EQUITY 310 Myles Etter, Capital 311 Myles Etter, Drawing 312 Crystal Santori, Capital 313 Crystal Santori, Drawing 314 Lonnie Davis, Capital 315 Lonnie Davis, Drawing Journal Assume the sale occurs on December 31. Refer to the chart of accounts for the exact wording of the account hitles. CNOW journals do not use lines for journal Every line on a journal page is used for dobit or credit entries. CNOW Journals will automatically indent a credit entry when a credit amount is entered Scroll dow parts (a) and (b) of the exercise, (a) What entry is required by the partnership of the sales price is $58, 100% JOURNAL ACCOUNTING EQUA DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES 1 2 (b) What entry is required by the partnership if the sales price is $77 100? (a) What entry is required by the partnership i the sales price is $58, 100? JOURNAL ACCOUNTING EC DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS 1 LIABILITIES *** 2 (b) What entry is required by the partnership if the sales price is $77,1007 JOURNAL ACCOUNTING EQL DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LAB UTIES 1 2 Online teaching and eBook Show Me How Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $291,000 and that Shannon is to invest $97,000. Black is to devote one-half time to the business, and Shannon is to devote full time. The following plans for the division of income a being considered: a. Equal division b. In the ratio of original investments. c. In the ratio of time devoted to the business. d. Interest of 6% on original Investments and the remainder equally. e. Interest of 6% on original investments, salary allowances of $55,000 to Black and $75,000 to Shannon, and the remainder equally, f. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $115,000 and (2) net income of $225,000. Round answers to the nearest whole dollar. (1) (2) $115,000 $225,000 Plan Black Shannon Black Shannon b. c d e. DO f Instructions The capital accounts of Trent Henry and Tim Chou have balances of S142,900 and $85,800, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership Gilbert buys one-fifth of Henry's interest for $31,400 and one-fourth of Chou's interest for $20,200. Clarke contributes $74,500 cash to the partnership, for which she is to receive an ownership equity of $74,500 Required: a on December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Rotor to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every ine on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered b. What are the capital balances of each partner after the admission of the new partners ? Chart of Accounts CHART OF ACCOUNTS Henry, Chou, Gilbert, and Clarke General Ledger CHART OF ACCOUNTS Henry, Chou, Gilbert, and Clarke General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable EXPENSES 113 Allowance for Doubtful Accounts 114 Interest Receivable 115 Notes Receivable 510 Cost of Merchandise Sold 520 Salaries Expense 116 Inventory 117 Office Supplies 118 Store Supplies 521 Advertising Expense 522 Depreciation Expense-Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 119 Prepaid Insurance 120 Land 531 Rent Expense 123 Equipment 124 Accumulated Depreciation-Equipment 129 Asset Revaluations 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 133 Patent 536 Credit Card Expense k My Work Show Me How LIABILITIES 537 Cash Short and Over 538 Bad Debt Expense 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable 539 Miscellaneous Expense 710 Interest Expense EQUITY 310 Trent Henry, Capital 311 Trent Henry, Drawing 312 Tim Chou, Capital 313 Tim Chou, Drawing 314 LeAnne Gilbert, Capital 315 LeAnne Gilbert, Drawing 316 Becky Clarke, Capital 317 Becky Clarke, Drawing Show Me How JOURNAL HCVC DESCRIPTION POST. REF. DEBIT CREDIT ASSETS 5 Final Question b. What are the capital balances of each partner after the admission of the new partners? Capital Balance $ Partner Trent Henry, Capital Tim Chou, Capital LeAnne Gilbert, Capital Becky Clarke, Capital 5 Chuck Manke The partnership of Angel Investor Associates began operations on January 1, 2045, with contributions from two partners as follows: Dennis Overton $33,500 Ben Testerman 81,740 The following additional partner transactions took place during the year: 1. In early January, Randy Campbell is admitted to the partnership by contributing $18,760 cash for a 14% interest. 2. Net income of $170,000 was earned in 2015. 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, 205. If an amount box does not require an entry leave it blan- Angel Investor Associates Statement of Partnership Equity For the Year Ended December 31, 2015 Dennis Overton, Ben Testerman, Randy Campbell Total Partnership Capital Capital Capital Capital Balances, January 1, 2015 Admission of Randy Campbell Salary allowance Remaining income Partner withdrawals Balances, December 31, 2015 Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, Investing $104,000 and $156,000, respectively, Determine their participation in the year's net income of $295,000 under each of the following independent assumptions: a. No agreement concerning division of net income b. Divided in the ratio of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $34,000 and $48,000, respectively, and the balance divided equally e. Allowance of interest at the rate of 5% on original investments, salary allowances of $34,000 and $48,000, respectively, and the remai divided equally Dawson McDonald a. suo e. Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, Investing $70,000 and $210,000, respectively, Determine their participation in the year's net income of $110,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital Investment, c. Interest at the rate of 5% allowed on original Investments and the remainder divided in the ratio of 2:3, d. Salary allowances of $40,000 and $45,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $40,000 and $45,000, respectively, and the remainder divided equally Dawson McDonald CE OT Instructions Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $174,300 and $58,140, respectively. Elter, with the consent of Santori, selis one-third of his interest to Lonnie Davis Required: Assume the sale occurs on December 31. What entry is required by the partnership if the sales price is (a) 558,100? () $77,100? Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Chart of Accounts CHART OF ACCOUNTS Etter, Santori and Davis General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 111 Petty Cash 112 Accounts Receivable FRP CHART OF ACCOUNTS Etter, Santori and Davis General Ledger ASSETS 110 Cash REVENUE 410 Sales 610 Interest Revenue 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Interest Receivable 115 Notes Receivable 116 Inventory 117 Office Supplies 118 Store Supplies 119 Prepaid Insurance EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 531 Rent Expense 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 120 Land 123 Equipment 124 Accumulated Depreciation-Equipment 129 Asset Revaluations 133 Patent 536 Credit Card Expense LIABILITIES 537 Cash Short and Over 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense EQUITY 310 Myles Etter, Capital 311 Myles Etter, Drawing 312 Crystal Santori, Capital 313 Crystal Santori, Drawing 314 Lonnie Davis, Capital 315 Lonnie Davis, Drawing Journal Assume the sale occurs on December 31. Refer to the chart of accounts for the exact wording of the account hitles. CNOW journals do not use lines for journal Every line on a journal page is used for dobit or credit entries. CNOW Journals will automatically indent a credit entry when a credit amount is entered Scroll dow parts (a) and (b) of the exercise, (a) What entry is required by the partnership of the sales price is $58, 100% JOURNAL ACCOUNTING EQUA DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES 1 2 (b) What entry is required by the partnership if the sales price is $77 100? (a) What entry is required by the partnership i the sales price is $58, 100? JOURNAL ACCOUNTING EC DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS 1 LIABILITIES *** 2 (b) What entry is required by the partnership if the sales price is $77,1007 JOURNAL ACCOUNTING EQL DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LAB UTIES 1 2 Online teaching and eBook Show Me How Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $291,000 and that Shannon is to invest $97,000. Black is to devote one-half time to the business, and Shannon is to devote full time. The following plans for the division of income a being considered: a. Equal division b. In the ratio of original investments. c. In the ratio of time devoted to the business. d. Interest of 6% on original Investments and the remainder equally. e. Interest of 6% on original investments, salary allowances of $55,000 to Black and $75,000 to Shannon, and the remainder equally, f. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $115,000 and (2) net income of $225,000. Round answers to the nearest whole dollar. (1) (2) $115,000 $225,000 Plan Black Shannon Black Shannon b. c d e. DO f Instructions The capital accounts of Trent Henry and Tim Chou have balances of S142,900 and $85,800, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership Gilbert buys one-fifth of Henry's interest for $31,400 and one-fourth of Chou's interest for $20,200. Clarke contributes $74,500 cash to the partnership, for which she is to receive an ownership equity of $74,500 Required: a on December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Rotor to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every ine on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered b. What are the capital balances of each partner after the admission of the new partners ? Chart of Accounts CHART OF ACCOUNTS Henry, Chou, Gilbert, and Clarke General Ledger CHART OF ACCOUNTS Henry, Chou, Gilbert, and Clarke General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable EXPENSES 113 Allowance for Doubtful Accounts 114 Interest Receivable 115 Notes Receivable 510 Cost of Merchandise Sold 520 Salaries Expense 116 Inventory 117 Office Supplies 118 Store Supplies 521 Advertising Expense 522 Depreciation Expense-Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 119 Prepaid Insurance 120 Land 531 Rent Expense 123 Equipment 124 Accumulated Depreciation-Equipment 129 Asset Revaluations 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 133 Patent 536 Credit Card Expense k My Work Show Me How LIABILITIES 537 Cash Short and Over 538 Bad Debt Expense 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable 539 Miscellaneous Expense 710 Interest Expense EQUITY 310 Trent Henry, Capital 311 Trent Henry, Drawing 312 Tim Chou, Capital 313 Tim Chou, Drawing 314 LeAnne Gilbert, Capital 315 LeAnne Gilbert, Drawing 316 Becky Clarke, Capital 317 Becky Clarke, Drawing Show Me How JOURNAL HCVC DESCRIPTION POST. REF. DEBIT CREDIT ASSETS 5 Final Question b. What are the capital balances of each partner after the admission of the new partners? Capital Balance $ Partner Trent Henry, Capital Tim Chou, Capital LeAnne Gilbert, Capital Becky Clarke, Capital 5 Chuck Manke