Partner bonuses, statement of partnership equity
The partnership of Angel Investor Associates began operations on January y with contributions from two partners as
follows:
Dennis Overton
$
Ben Testerman
The following additional partner transactions took place during the year:
In early January, Randy Campbell is admitted to the partnership by contributing $ cash for a interest.
Net income of $ was earned in In addition, Dennis Overton received a salary allowance of $ for the year.
The three partners agree to an incomesharing 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 y If an amount bor does not require an entry,
leave it blank.
Angel Investor Associates
Statement of Partnership Equity
For the Year Ended December Y
Line Item Description
Dennis
Querton,
Capital
Balances, January Y
Admission of Randy Campbell
Salary allowance
Remaining income
Partner withdrawals
Balances, December $
$$
Capital
Total
$
X
x
