The following are the adjusted account balances of Abel and Rist as of December 31, the end
Question:
The following are the adjusted account balances of Abel and Rist as of December 31, the end of this fiscal year.
The merchandise inventory at the beginning of the year was $139,146, and there were no changes in the partners’ Capital accounts during the year. The partner¬
ship agreement provides for salary allowances of $31,200 for Abel and $28,800 for Rist. The agreement also stipulates interest of 12 percent on invested capital at the beginning of the year. The remainder of the net income is to be divided equally.
Instructions 1. Prepare an income statement for the year.
2. Prepare a statement of partners’ equity for the year.
3. Prepare a classified balance sheet at the end of the year Check Figure Rist, Capital, $59,668 Check Figure For $56,000, Plan (c), Jayson, Net Income, $26,810 P.O. 2c,4
Step by Step Answer:
College Accounting Chapters 1-26
ISBN: 9780395796993
6th Edition
Authors: Douglas J. McQuaig, Patricia A. Bille