2014 January 1 - Brady and Manning decide to start up a partnership. Brady brings in $10 000 cash and equipment costing $60 000, with $17 000 in the accumulated depreciation account. The fair market value of the equipment is $37 000. Manning brings $54 000 in cash. They agree to an income ratio of 5:4.

When allocating amounts to each capital account be sure to use the exact ratios (fractions) and not the rounded percentage that each partner would get.

December 31 - The business records a net income of $24 000, and Brady has a debit balance of $16 000 in his drawings account.

a) Record the journal entry to establish the partnership.

b) Record the entry to allocate the net income to the partners' capital accounts.

c) Prepare a Statement of Partners' Equity for 2014.

2015 January 1 - McNabb joins the partnership by contributing $46 000 in cash. A new partnership agreement is drawn up. Brady, Manning and McNabb agree to salaries of $5 000 for each partner and a 5:4:3 income ratio. December 31 - The business recorded a net income of $30 000. Brady had drawings of $20 000 and Manning had drawings of $4 000.

a) Record the entry to admit the new partner into the business.

b) Record the entry to allocate the net income and salaries to the partners' capital accounts.

c) Prepare a Statement of Partners' Equity for 2015.

2016 January 1 - Manning decides to leave the partnership. McNabb agrees to pay Manning $73 000 in a private transaction for his entire share in the business. The result is that all of Manning's equity will be transferred to McNabb. The income or loss will now be divided equally (50-50) between Brady and McNabb. There will be no salary. December 31 - The business recorded a net loss of $46 000. There were no drawings. Show the entry to allocate the net income to the partners' capital accounts. Prepare a Statement of Partners' Equity for 2016.

a) Prepare the entry to record the departure of Manning.

b) Record the entry to allocate the net income to the partners' capital accounts.

c) Prepare a Statement of Partners' Equity for 2016.

2017 January 1 The partners decide to liquidate the partnership. They have the following balances: Cash $29,917 Accounts Receivable $4 500 Equipment $ 110 000 Accumulated Depreciation $ 25 000 Accounts Payable $ 4 417 The partners were able to collect $3 500 of the accounts receivable and sell the equipment for $72 000.

a) Record all journal entries to dissolve the partnership.

Need to fill out the spreadsheet thank you i will be sure to give a thumbs up for your hard work and help!

A B D E F G H 1 J L M 1 1 General Journal SUPPORTING CALCULATIONS Page Credit Particulars Debit 1 2. 3 Date 4 4 2014 5 Jan 6 7 8 9 31 10 11 Dec. 12 13 14 2015 1 Brady Manning McNabb Total 31 Income Ratio 5.4:3 Net Income Income Distribution Salary Net Income allocated PRIOR to ratio application Net Income to be located based on income ratio Share of income based on income ratio Total allocation of net income 1 15 2015 16 Jan 17 18 19 20 Dec 21 22 23 24 25 26 27 2016 28 Jan 29 30 31 32 Dec. 33 34 35 36 37 2017 38 Jan 39 40 41 42 43 44 45 46 31 1 2017 Balance Shoot Before Lig After Liq Assets Cash Equipment AR 1 47 0 0 48 49 1 50 Liabilities & Equity Accounts Payable Brady. Capital NcNabb, Capital 51 0 0 1 52 53 54 55 56 57 53 on Journal Entries Statement of Partner's Equity + A B D E 1 2 3 4 Brady, Manning and McNabb Statement of Partners' Equity For the years ending December 31, 2014-2016 Brady Manning McNabb Total 5 6 2014 7 Balance, Jan. 1 8 Add: Investments 9 Net Income 10 Subtotal 11 Less: Drawings 12 Balance, Dec. 31 13 14 2015 15 Balance, Jan. 1 16 Add: Investments 17 Net Income 18 Subtotal 19 Less: Drawings 20 Balance, Dec. 31 21 22 2016 23 Balance, Jan. 1 24 Add: Buyout 25 Net Loss 26 Balance, Dec. 31 27 28 29 Journal Entries Statement of Partner's Equity +