Mike and Rachel form M\&R Partnership. Mike invests $40,000 cash and Rachel invests $60,000 cash....
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Mike and Rachel form M\&R Partnership. Mike invests $40,000 cash and Rachel invests $60,000 cash. The partners agree to share income as follows. Mike gets a salary allowance of $5,000 per year and Rachel gets a salary allowance of $9,000 per year, both get an annual interest aliowance of 10% on their initial investment, and any remaining balance is shared equally Net income for the year is $30,000. Also, Mike withdrew $1,000 cash from the partnership and Rachel withdrew $2,000. Prepare a statement of partners' equity for the year ended December 31 Note: Do not round intermediate calculations. Enter all allowances as positive values. Enter losses and withdrawals as negative values
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