Three Sisters' Catering Operates as a Partnership

question 91

Essay

Three Sisters' Catering operates as a partnership.When they formed the business, two of the sisters, Abby and Edie, each contributed $10,000 cash.The third sister, Susan, contributed cookware and dishes worth
$6,000.All the meal preparation is done in Susan's kitchen, and the office is located in her basement.They agreed to split the profits evenly between the three of them.During the first year the business made $15,000 profit, and as agreed, none of them withdrew money in the first year.In the second year, which ended April 30,
2014, the business made $48,000 and the partners paid themselves the following wages: Abby $10,000, Edie
$12,000 and Susan $8,000.
Required:
A) Prepare, in good form, a Statement of Partners' Equity for the second year of operation.

• A) Prepare, in good form, a Statement of Partners' Equity for the second year of operation.

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Definitions:

Personality Trait

A characteristic way an individual thinks, feels, and behaves, shaping their personality.

Conscientiousness

A personality trait marked by organization, dependability, and a strong sense of duty.

Humanism

A philosophical and ethical stance that emphasizes the value and agency of human beings, individually and collectively.

Abraham Maslow

An American psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivation.