The ledger of Ken White and Alex Weekley, lawyers, contains the following accounts and balances after adjustments have been recorded on December 31, 2015:

The balance in Weekley's capital account includes an additional investment of $20,000 made on April 5, 2015.

Instructions

1. Prepare an income statement for the current fiscal year, indicating the division of net income as shown on page 570. The articles of partnership provide for salary allowances of $60,000 to White and $75,000 to Weekley, allowances of 5% on each partner's capital balance at the beginning of the fiscal year, and equal division of the remaining net income or net loss.

2. Prepare a statement of changes in partnership equity for 2015.

3. Prepare a balance sheet as at the end of 2015.