The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from...
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Accounting
The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows:
Dennis Overton $180,000 Ben Testerman 120,000
The following additional partner transactions took place during the year:
In early January, Randy Campbell is admitted to the partnership by contributing $75,000 cash for a 20% interest. Net income of $150,000 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. 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.
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