2.png Graff and Serigo Vargas formed a partnership in which the partnership agreement provided for salary allowances of $49,000 and $43,000, respectively. Determine the division of a $25,000 net loss for the current year, assuming that remaining income or losses are shared equally by the two partners. Use the minus sign to indicate any deductions or deficiencies Morgan Graff Serigo Vargas Salary Allowance Remainder Net Loss $ $ $ Total rtner bonuses, statement of partnership equity e partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows: ennis Overton $76,670 67,320 en Testerman e following additional partner transactions took place during the year: In early January, Randy Campbell is admitted to the partnership by contributing $43,010 cash for a 23% interest.
2.png Graff and Serigo Vargas formed a partnership in which the partnership agreement provided for salary allowances of $49,000 and $43,000, respectively. Determine the division of a $25,000 net loss for the current year, assuming that remaining income or losses are shared equally by the two partners. Use the minus sign to indicate any deductions or deficiencies Morgan Graff Serigo Vargas Salary Allowance Remainder Net Loss $ $ $ Total rtner bonuses, statement of partnership equity e partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows: ennis Overton $76,670 67,320 en Testerman e following additional partner transactions took place during the year: In early January, Randy Campbell is admitted to the partnership by contributing $43,010 cash for a 23% interest.
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 48P
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Transcribed Image Text:Dividing partnership net loss
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Graff and Serigo Vargas formed a partnership in which the partnership agreement provided for salary allowances of $49,000 and $43,000, respectively.
Determine the division of a $25,000 net loss for the current year, assuming that remaining income or losses are shared equally by the two partners. Use the minus sign to indicate any deductions or deficiencies.
Morgan Graff
Serigo Vargas
Salary Allowance
Remainder
Net Loss
$
Line Item Description
Balances, January 1, 20Y5
Admission of Randy Campbell
Salary allowance
Remaining income
Partner withdrawals
$
$
Balances, December 31, 20Y5
Partner bonuses, statement of partnership equity
The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows:
Dennis Overton
$76,670
67,320
Ben Testerman
The following additional partner transactions took place during the year:
1. In early January, Randy Campbell is admitted to the partnership by contributing $43,010 cash for a 23% interest.
2. Net Income of $240,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $60,000 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.
Prepare a statement of partnership equity for the year ended December 31, 20Y5. If an amount box does not require an entry, leave it blank.
Angel Investor Associates
Statement of Partnership Equity
For the Year Ended December 31, 20Y5
$
$
$
Ben
Dennis
Randy
Overton, Testerman, Campbell,
Capital Capital Capital
Total
Total
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