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Gorman and Morton form a partnership on May $1,2022.$ Gorman contributes cash of $$73,000$; Morton conveys title to the following Required:

Prepare schedules that determine the capital balances for the individual partners as of the end of each year $2022$ through $2024.$

Complete this question by entering your answers in the tabs below.

Prepare a schedule that determines the ending capital balance for each partner as of the end of $2022.$ Complete this question by entering your answers in the tabs below.

Ending Capital

Ending Capital

Ending Capital

Balance $2022$

Balarke $2023$

Balance $2024$

Prepare a schedule that determines the ending capital balance for each partner as of the end of $2023.$

Note: Amounts to be deducted should be indicated with minus sign. Required:

Prepare schedules that determine the capital balances for the individual partners as of the end of each year $2022$ through $2024.$

Complete this question by entering your answers in the tabs below.

Ending Capital

Balance $2022$

Ending Capital

Ending Kapital

Balance $2023$

Balance $2024$

Prepare a schedule that determines the ending capital balance for each partner as of the end of $2024.$

Note: Amounts to be deducted should be indicated with minus sign.

propertles to the partnership:

The partners agree to start thelr partnership with equal capital balances. No goodwill is to be recognized.

According to the articles of parthership written by the parthers, profits and losses are allocated based on the following formula:

Gorman recelves a compensation allowance of $$1,300$ per month.

All remaining profits and losses are split $40$:$60$ between Gorman and Morton, respectively.

Each partner can make annual cash drawings of $$5,000$ beginning in $2023.$

Net income of $$22,500$ is earned by the business during $2022.$

Steele is invited to Join the partnership on January $1,2023.$ Because of her business reputation and financial expertise, she is given a

$40$ percent interest for $$77,000$ cash. The bonus approach is used to record this investment, made directly to the business. The articles

of partnership are amended to give Steele a $$4,000$ compensation allowance per month and an annual cash drawing of $$10,000.$

Remaining profits are now allocated:

All drawings are taken by the partners during $2023.$ At year$-$end, the partnership reports net income of $$130,000.$

On January $1,2024,$ Frank $($previously a partnership employee$)$ is admitted into the parthership. Each partner transfers $10$ percent to

Frank, who makes the following payments directly to the partners:

Once again, the articles of partnership must be amended to allow for the entrance of the new parther. This change entitles Frank to a

compensation allowance of $$700$ per month and an annual drawing of $$3,000.$ Profits and losses are now assigned as follows:

For the year of $2024,$ the partnership earned a profit of $$54,800,$ and each partner withdrew the allowed amount of cash.

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