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(Solved) Please finish this graph for me. I need all of the boxes filled.


Please finish this graph for me. I need all of the boxes filled.


Angel Investor

 

Associates

 

Statement of Partnership

 

Equity

 

For the Year Ended December 31,

 

2014

 

Dennis Overton,

 

Capital

 

Partnership

 

capital,

 

January 1,

 

2014

 

Admission

 

of Randy

 

Campbell

 


 

$

 


 

Ben Testerman,

 

Capital

 

$

 


 

Total Partnership

 

Capital

 

$

 


 

180000

 


 

120000

 


 

0

 


 

Salary

 

allowance

 


 

Randy Campbell,

 

Capital

 


 

0

 


 

300000

 


 

$

 


 

75000

 


 

75000

 


 

40000

 


 

40000

 


 

Remaining

 

income

 

Less:

 

Partner

 

withdrawals

 

Partnership

 

capital,

 

December

 

31, 2014

 


 

$

 


 

$

 


 

$

 


 

$

 


 

Partner Bonuses, Statement of Partners' Equity

 

The partnership of Angel Investor Associates began operations on January 1, 2014, with contributions

 

from two partners as follows:

 


 

The following additional partner transactions took place during the year:

 

1. In early January, Randy Campbell is admitted to the partnership by contributing $75,000 cash for a

 

20% interest.

 

2. Net income of $150,000 was earned in 2014. 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.

 

3. The partners' withdrawals are equal to half of the increase in their capital balances from salary

 

allowance and income.

 


 

Distribution of Cash Upon Liquidation

 

Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They

 

agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $225

 

and $300 of their own respective funds to pay for advertising and other expenses. After collecting for

 

all sales and paying creditors, the partnership has $1,500 in cash.

 

Use the minus sign to indicate any deficiency for the capital accounts.

 

a. How should the money be distributed?

 

Bray

 

Lincoln

 

Mapes

 


 

Capital balances and cash distribution

 


 

$

 


 

$

 

550

 


 

$

 

625

 


 

$

 

325

 


 

1500

 


 

b. Assuming that the partnership has only $300 instead of $1,500, do any of the three partners have

 

a capital deficiency?

 

No

 


 

If so, how much?

 

$

 

Bray

 

Capital balances

 


 

$

 


 

Lincoln

 

$

 


 

Mapes

 

$

 


 

Total

 

$

 


 

Dividing Partnership Income

 

Nicole Murphy and Ashley Drake formed a partnership, investing $270,000 and $90,000, respectively.

 

Determine their participation in the year's net income of $350,000 under each of the following

 

a.

 

b.

 

c.

 

d.

 

e.

 


 

independent assumptions:

 

No agreement concerning division of net income.

 

Divided in the ratio of original capital investment.

 

Interest at the rate of 5% allowed on original investments and the remainder divided in the

 

ratio of 2:3.

 

Salary allowances of $40,000 and $50,000, respectively, and the balance divided equally.

 

Allowance of interest at the rate of 5% on original investments, salary allowances of $40,000

 

and $50,000, respectively, and the remainder divided equally.

 

Murphy

 

Drake

 

(a)

 


 

$

 


 

$

 


 

(b)

 


 

$

 


 

$

 


 

(c)

 


 

$

 


 

$

 


 

(d)

 


 

$

 


 

$

 


 

(e)

 


 

$

 


 

$

 


 

 


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About this Question

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DATE ANSWERED

Oct 15, 2019

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