On March 2, 2020, Zoe Moreau, Karen Krneta, and Veronica Visentin start a partnership to operate a personal coaching and lifestyle consulting practice for professional women. Zoe will focus on work-life balance issues, Karen on matters of style, and Veronica on health and fitness. They sign a partnership agreement to split profits in a 3:2:3 ratio for Zoe, Karen, and Veronica, respectively. The following are the transactions for SUNLAND Personal Coaching:
2020
Mar. 2 The partners contribute assets to the partnership at the following agreed amounts:
Z. Moreau K. Krneta V. Visentin
Cash $14,900 $10,100 $19,700
Furniture 17,500
Equipment 18,700 13,900
Total $33,600 $27,600 $33,600
They also agree that the partnership will assume responsibility for Karen’s note payable of $5,200.
Dec. 20 Zoe, Karen, and Veronica each withdraw $30,100 cash as a "year-end bonus." No other withdrawals were made during the year.
31 Total profit for 2020 was $109,000.
2021
Jan. 5 Zoe and Veronica approve Karen’s request to withdraw from the partnership for personal reasons. They agree to pay Karen $14,850 cash from the partnership.
6 Zoe and Veronica agree to change their profit-sharing ratio to 4:5, respectively.
Dec. 20 Zoe and Veronica withdraw $42,400 and $45,800 cash, respectively, from the partnership.
31 Total profit for 2021 was $123,750.
2022
Jan. 4 Zoe and Veronica agree to admit Dela Hirjikaka to the partnership. Dela will focus on providing training in organizational skills to clients. Dela invests $31,000 cash for 25% ownership of the partnership.
