1216
ANGEL INVESTOR ASSOCIATES
Statement of Partnership Equity
For the Year Ended December 31, 2010
Jen
Teresa
Jaime
Wilson, McDonald, Holden,
Capital
Capital
Capital
Partnership capital, January 1, 2010 ........ $ 45,000
Admission of Jaime Holden ......................
Total
Partnership
Capital
$ 55,000
$100,000
$ 25,000
25,000
30,000
57,200 26,000 130,000
(28,600) (13,000) (80,000)
$ 83,600 $ 38,000 $205,000
$100,000
25,000
$125,000
20%
$ 25,000
25,000
$
0
$45,000
= 36%
$125,000
Teresa McDonald:
Jaime Holden:
$55,000
= 44%
$125,000
$25,000
= 20%
$125,000
These ratios can be multiplied by the $130,000 remaining income ($160,000 $30,000
salary allowance to Wilson) to distribute the earnings to the respective partner capital accounts.
Withdrawals:
Half of the remaining income is distributed to the three partners. Wilson need not
take the salary allowance as a withdrawal but may allow it to accumulate in the
member equity account.
672
Ex. 1217
a.
b.
5,800
7,8001
5,2002
5,2002
24,000
252,8001
52,800
200,000
$245,000 + $7,800
Ex. 1218
a.
The income-sharing ratio is determined by dividing the net income for each
member by the total net income. Thus, in 2010, the income-sharing ratio is as follows:
Nevada Properties, LLC:
Star Holdings, LLC:
$90,000
= 30%
$300,000
$210,000
= 70%
$300,000
Or a 3:7 ratio
b. Following the same procedure as in (a):
Nevada Properties, LLC:
Star Holdings, LLC:
Randy Reed:
c.
$100,000
= 25%
$400,000
$220,000
= 55%
$400,000
$80,000
= 20%
$400,000
Randy Reed provided a $290,000 cash contribution to the business. The amount
credited to his member equity account is this amount less a $20,000 bonus paid
to the other two members, or $270,000.
673
Ex. 1218
Concluded
d. The positive entries to Nevada Properties and Star Holdings are the result of a
bonus paid by Randy Reed.
e.
$ 290,000
540,000
520,000
$1,350,000
20%
Ex. 1219
a.
Cash balance .................................................
Sum of capital accounts ...............................
Loss from sale of noncash assets ...............
$ 16,000
20,000
$ 4,000
Pryor
Lester
$ 12,000
2,000*
$ 10,000
10,000
$
0
$8,000
2,000*
$6,000
6,000
$
0
*$4,000/2
Ex. 1220
674
Bradley
Barak
Total
$ 26,000
$35,000
$61,000
7,500
$ 33,500
33,500
$
0
7,500
$42,500
42,500
$
0