The partnership of angel investor associates began


The partnership of Angel Investor Associates began operations on January 1, 2014, with contributions from two partners as follows:

Dennis Overton   $180,000

Ben Testerman      120,000

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 ration 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, 2014.

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Financial Accounting: The partnership of angel investor associates began
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