3 of 4 View Policies Current Attempt in Progress Tyler Gilligan and Matt Melnyk, two college friends, decided to set up a snow removal business called Ivanhoe Snow Removal Services. At the inception of the partnership. Tyler invested $4,000 cash and Matt invested $11,000 cash. Once formed, the partnership purchased equipment and a vehicle. Tyler estimates that the equipment purchased for $2,000 and the vehicle purchased for $10,000 have five-year useful lives, with no residual value. He used the straight-line method to calculate depreciation expense. At the end of the first year of business, Tyler, who was studying accounting, provided the following information: IVANHOE SNOW REMOVAL SERVICES Income Statement Year ended December 31, 2021 ACCT 1210-$11.doc Service revenue $51,030 Expenses Supplies expense $6,000 Depreciation expense 2,400 Salaries expense 31,470 39,870 Profit $11,160 ACCT 1210-511.doc Additional information: Salaries expense is $20,270 and $11,200 cash that was paid to Tyler and Matt, respectively, during the year. All revenues were collected in cash. 1. 2. 3. All supplies were paid for in cash. At the end of the year, there were no supplies on hand. 4. There is $16,560 in the bank account at December 31, 2021. Part 1 Prepare a journal entry to correct the errors, if any, on the income statement. (Credit account titles are automatically indented wi the amount is entered. Do not indent manually) Date Account Titles and Explanation: Debit Dec. 31 Credit Part 1 Prepare a journal entry to correct the errors, if any, on the income statement. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Dec. 31 (To correct error) eTextbook and Media Save for Later Credit Attempts: 0 of 5 used Submit Answer Part 2 Calculate the correct profit and the amount to be allocated to each partner. Correct profit T.Gilligan M. Melnyk Allocation of profit $ $ eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer Using multiple attempts will impact your score. ACCT 1210-511.doc A ACCT 1210-$11....doc Question 3 of 4 -125 Prepare a statement of partners' equity for the year ended December 31, 2021 theme that increporter's equity fint) IVANHOE SNOW REMOVAL SERVICES Statement of Partners' Equity December 31, 2021 T.Gigan M. Melnyk Total Assets Partners' Equity I Partners' Equity eTextbook and Media. Save for Later Using multiple attempts will impact your score 40% score reduction after attempt 4 Attempts: 0 of 5 used Submit