$1$

The Unadjusted Trial Balance for Hawkeye Ranges as of December $31$ is presented in requirement $1.$ The following additional information relates to the required year$-$end adjustments.

a$.$ As of December $31,$ employees had earned $$1,213$ of unpaid and unrecorded salaries. The next payday is January $4,$ at which time $$2,159$ of salaries will be paid.Watts and Lyon are forming a partnership. Watts invests $$36,000$ and Lyon invests $$54,000.$ The partners agree that Watts will work one$-$fourth of the total time devoted to the partnership and Lyon will work three$-$fourths. They have discussed the following alternative plans for sharing income and loss: $($a$)$ in the ratio of their initial capital investments; $($b$)$ in proportion to the time devoted to the business; $($c$)$ a salary allowance of $$15,000$ per year to Lyon and the remaining balance in accordance with the ratio of their initial capital investments; or $($d$)$ a salary allowance of $$15,000$ per year to Lyon, $11\%$ interest on their initial capital investments, and the remaining balance shared equally. The partners expect the business to perform as follows: Year $1,$$$17,000$ net loss; Year $2,$$$42,500$ net income; and Year $3,$ $$70,833$ net income.

Required:

Complete the tables, one for each of the first three years, by showing how to allocate partnership income or loss to the partners under each of the four plans being considered.

Note: Enter all allowances as positive values. Enter losses and capital deficits, if any, as negative values. Do not round intermediate calculations. Round final answer to the nearest whole dollar.

Complete this question by entering your answers in the tabs below.

Complete the tables, one for each of the first three years, by showing how to allocate partnership income or loss to the partners under each of the four plans being considered.

$\backslash$table$[[$Year $1,,,,,],[$Plan $($a$),,$Watts,,Lyon,Total$],[$Net Income $($loss$),,,,,$$$(17,000)],[\backslash$table$[[$Balance allocated in proportion to$],[$initial ifvestments$]],36,000/90,000,,54,000\backslash$gamma $90,000,,0],[$Balance of income $($loss$),,,,,$$$(17,000)],[$Shares to the partners,,$0,,$$$,$$$],[\backslash$bar $($ Plan $($b$)),,$Watts,,Lyon,Total$],[$Net Income $($loss$),,,,,$$$(17,000)],[\backslash$table$[[$Balance allocated in proportion to$],[$time devoted$]],,,,,0],[$Balance of income $($loss$),,,,,],[$Shares to the partners,,$0,,$$$,$$$],[$Plan $($c$),,$Watts,,Lyon,Total$],[$Net Income $($loss$),,,,,$$$(17,000)],[$Salary allowances,,,,,$0],[$Balance of income $($loss$),,,,,],[\backslash$tabl

b$.$ Cost of supplies still available at December $31$ total is $$3,655.$

c$.$ An interest payment is made every three months. The amount of unrecorded accrued interest at December $31$ is $$1,375.$ The next interest payment, at an amount of $$1,650,$ is due on January $15.$

d$.$ Analysis of Unearned Revenue shows $$7,582$ remaining unearned at December $31.$

e$.$ Accrues $$12,207$ of revenue for services provided. Payment will be collected on January $31.$

f$.$ Depreciation expense is $$17,234.$

Required:

Complete the six$-$column table by entering adjustments that reflect the above information.

Prepare journal entries for adjustments entered in the six$-$column table for Requirement $1.$

Prepare journal entries to reverse the effects of the adjusting entries that involve accruals.

Prepare journal entries to record cash payments and cash collections for January. $($Assume reversing entries were prepared.$)$

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Complete the six$-$column table by entering adjustments that reflect the above information.

$\backslash$table$[[$HAWKEYE RANGES$],[$Partial Work Sheet$],[$December $31],[,$Unadjusted Trial Balance,Adjustments,Adjusted Trial Balance$],[$Account Title,Debit,Credit,Debit,Credit,Debit,Credit$],[$Cash$,$$$,17,600,,,,,,],[$Accounts receivable,,$0,,,,12,207,,,],[$Supplies$,,7,445,,,,,,,],[$Equipment$,,179,520,,,,,,,],[$Accumulated depreciation$-$Equipment,,,$$,34,468,,,17,234,,],[$Interest payable,,,,$0,,,1,375,,],[$Salaries payable,,,,$0,,,1,213,,],[$Unearned revenue,,,,$18,955,,,,,],[$Notes payable,,,,$55,000,,,,,],[$P$.$ Hawkeye, Capital,,,,$92,774,,,,,],[$P$.$ Hawkeye, Withdrawals,,$26,400,,,,,,,],[$Services revenue,,,,$71,808,,,,,],[,,,,,,,,],[$Depreciation expense$-$Equipment,,$0,,,,17,234,,,],[$Salaries expense,,$37,915,,,,1,213,,,],[$Interest expense,,$4,125,,,,1,375,,,],[$Supplies expense,,$0,,,,,,,],[$Totals$,$$$,273,005,$$$,273,005,$$$,32,029,19,822,$$$,$$$]]$Complete this question by entering your answers in the tabs below.

Year $3$

Complete the tables, one for each of the first three years, by showing how to allocate partnership income or loss to the partners under each of the four plans being considered.