Assignment Instructions/ Description
�Image transcription textPartnership profits are allocated based first on salaries, then on interest on opening capital
balances, then on a fixed ratio.
Salary allocation amounts are:
A
$100,000
$100,000
$160,000
Opening capital balances are:
$70,000
$60,000
$70,000
Interest rate is:
5%
The fixed ratio is:
A
W N
5
Required
1 Prepare year-end adjusting entries. No descriptions are necessary.
2 Allocate partnership profit or loss to each partner. Prepare the necessary adjusting entry.
3 Post the adjusting entries and complete the trial balance.
4 Prepare an income statement and statement of partners' capital for the year ended
December 31, 2019 and a balance sheet at December 31.... Show moreImage transcription textPart B (2020)
a. On December 31, 2020 new partner D invests other assets into the partnership for a one-
quarter ownership interest. An equal amount of capital is contributed by A, B, and C to make
up the difference. At December 31, 2020, the partners' capital balances are as follows:
A
$200,000
180,000
190,000
$ 570,000
Fair value of other
assets from D
$50,000
b. Immediately after this, partner C withdraws from the partnership. She is paid in cash the
balance in her capital account plus a bonus, contributed equally from the capital balances
of A, B, and D.
Bonus paid to C $ 18,000
Required
5 Prepare necessary adjusting entries at December 31, 2020 to record the admission of
partner D and the withdrawal of partner C. Show all calculations.... Show moreImage transcription textPart C (2021 and 2022)
The trial balance of A, B, and D at December 31, 2021 after all adjustments have
been made is as follows:
Adjusted Balances
Account Title
Debit
Credit
Cash
83,000
Other Assets
80,000
Accounts Payable
140,000
A, Capital
7,000
B, Capital
7,000
C, Capital
9,000
163,000
163,000
On January 1, 2022 the partnership is liquidated.
Other assets are sold for:
$144,000
Gains and losses are liquidated in a ratio of:
A
IN
B
O
Required
6 Print out the "Part. Liqu." page (see tab below). Complete the schedule. Assume any
partner deficiency (debit balance) is repaid with cash by the applicable partner.
7 Prepare the journal entries to record the liquidation.... Show moreImage transcription textA, B, and C
GENERAL JOURNAL
Description
Debit
Credit... Show moreImage transcription textA
B
C
Total
Amount of profit
5200,000
Salary allocation
0
Balance
200,000
Interest allocation:
Opening cap.
Rate
A
5%
0
B
5%
0
C
5%
0
0
Balance
200,000
Fixed ratio allocation
A
20%
50
B
30%
50%
SO
0
Balance
$200,000
Allocated to partners
SO
SO... Show moreImage transcription textA, B, and C
Trial Balance
At December 31, 2019
Unadjusted Balances
Adjusting Entries
Adjusted Balances
Account Title
Debit
Credit
#
Debit
Credit
#
Debit
Credit
Cash
90,000
90,000
Accounts Receivable
300,000
300,000
Accounts Payable
50,000
50,000
A, Capital
160,000
160,000
A, Withdrawals
0
B, Capital
180,000
180,000
B, Withdrawals
0
C, Capital
200,000
200,000
C, Withdrawals
0
Income Summary
0
Fees Revenue
500,000
500,000
Office Expense
300,000
300,000
Salaries Expense - A
110,000
110,000
Salaries Expense - B
140,000
140,000
Salaries Expense - C
150,000
150,000
1,090,000
1,090,000
0
0
1,090,000
1,090,000... Show moreImage transcription textA, B, and C
Income Statement
For the Year Ended December 31, 2019
A, B, and C
Statement of Partners' Capital
For the Year Ended December 31, 2019
A
B
C
Total
Bal. at Jan 1, 2019
Bal. at Dec. 31, 2019
A, B, and C
Balance Sheet
At December 31, 2019
Assets
Liabilities
Partners' Equity... Show moreImage transcription textA, B, and D
Statement of Partnership Liquidation
For the Day Ending January 1, 2022
Accounts
Cash
Other assets
payable
Partners' capital
A
B
D
Opening balance
Allocation of gain (loss)
Amount
Ratio
P... Show more�Asking for assistance with clarification of completion