Problem 14-28 (Algo) (LO 14-5, 14-6, 14-9) Gorman and Morton form a partnership on May 1, 2019. Gorman contributes cash

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Problem 14-28 (Algo) (LO 14-5, 14-6, 14-9)
Gorman and Morton form a partnership on May 1, 2019. Gorman
contributes cash of $64,000; Morton conveys title to the following
properties to the partnership:
The partners agree to start their partnership with equal capital
balances. No goodwill is to be recognized.
According to the articles of partnership written by the
partners, profits and losses are allocated based on the following
formula:
Net income of $18,000 is earned by the business during 2019.
Steele is invited to join the partnership on January 1, 2020.
Because of her business reputation and financial expertise, she is
given a 40 percent interest for $68,000 cash. The bonus approach is
used to record this investment, made directly to the business. The
articles of partnership are amended to give Steele a $3,000
compensation allowance per month and an annual cash drawing of
$16,000. Remaining profits are now allocated:
All drawings are taken by the partners during 2020. At year-end,
the partnership reports net income of $112,000.
On January 1, 2021, Frank (previously a partnership employee) is
admitted into the partnership. Each partner transfers 10 percent to
Frank, who makes the following payments directly to the
partners:
Once again, the articles of partnership must be amended to allow
for the entrance of the new partner. This change entitles Frank to
a compensation allowance of $700 per month and an annual drawing of
$7,000. Profits and losses are now assigned as follows:
For the year of 2021, the partnership earned a profit of $44,100,
and each partner withdrew the allowed amount of cash.
Prepare schedules that determine the capital balances for the
individual partners as of the end of each year 2019 through
2021.