FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Mike and Rachel form M&R Partnership. Mike invests $41,000 cash and Rachel invests $61,000 cash. The partners agree to share
income as follows: Mike gets a salary allowance of $5,100 per year and Rachel gets a salary allowance of $9,100 per year, both get an
annual interest allowance of 12% on their initial investment; and any remaining balance is shared equally. Net income for the year is
$31,000. Also, Mike withdrew $1,100 cash from the partnership and Rachel withdrew $2,100.
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.
M&R PARTNERSHIP
Statement of Partners' Equity
For Year Ended December 31
Initial partnership investments
Net income
Total net income
Total
$
Mike
0
0 $
Rachel
0
0 $
Total
0
0
0
0
Seved
0
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Transcribed Image Text:Mike and Rachel form M&R Partnership. Mike invests $41,000 cash and Rachel invests $61,000 cash. The partners agree to share income as follows: Mike gets a salary allowance of $5,100 per year and Rachel gets a salary allowance of $9,100 per year, both get an annual interest allowance of 12% on their initial investment; and any remaining balance is shared equally. Net income for the year is $31,000. Also, Mike withdrew $1,100 cash from the partnership and Rachel withdrew $2,100. 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. M&R PARTNERSHIP Statement of Partners' Equity For Year Ended December 31 Initial partnership investments Net income Total net income Total $ Mike 0 0 $ Rachel 0 0 $ Total 0 0 0 0 Seved 0 < Prev 26 of 26 Next 3
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