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28 Sep 2019
The answer must be typed and correct, if not you will bereported
Do not copy the old answers.
The partnership of Abraham Associates began operations onJanuary 1, 2010, with contributions from two partners asfollows:
Waverley $50,000 Marquez 60,000
The following additional partner transactions took place during theyear:
(1) In early January, Houston is admitted to the partnership bycontributing $40,000 cash for a 32% interest. (2) Net income of $100,000 was earned in 2010. In addition,Waverley received a salary allowance of $40,000 for the year. Thethree partners agree to an income-sharing ratio equal to theircapital balances after admitting Houston. (3) The partnersâ withdrawals are equal to half of their respectivedistributions of income after salary (i.e., half their respectiveportions of the $60,000).
Required:
Prepare a statement of partnership equity for the year endedDecember 31, 2010.
The answer must be typed and correct, if not you will bereported
Do not copy the old answers.
The partnership of Abraham Associates began operations onJanuary 1, 2010, with contributions from two partners asfollows:
| Waverley | $50,000 |
| Marquez | 60,000 |
The following additional partner transactions took place during theyear:
| (1) | In early January, Houston is admitted to the partnership bycontributing $40,000 cash for a 32% interest. |
| (2) | Net income of $100,000 was earned in 2010. In addition,Waverley received a salary allowance of $40,000 for the year. Thethree partners agree to an income-sharing ratio equal to theircapital balances after admitting Houston. |
| (3) | The partnersâ withdrawals are equal to half of their respectivedistributions of income after salary (i.e., half their respectiveportions of the $60,000). |
Required:
Prepare a statement of partnership equity for the year endedDecember 31, 2010.
Beverley SmithLv2
28 Sep 2019
