4.

Keith Williams and Brian Adams were students when they formed a partnership several years ago for a part-time business called Music Works. Adjusted trial balance Information for the year ended December 31, 2020, appears below. Account Accounts payable Accumulated depreciation Brian Adams, capital** Brian Adams, withdrawals Cash Equipment Expenses Balance Account $ 10,800 Keith Williams, capital** 88,000 Keith Williams, withdrawals 35,000 Note payable, due May 2022*** 73, eee Office supplies 223,600 Revenues 326,00 Utilities payable 115,00 Balance $ 41,300 63, eee 146, eee 29, eee 506,000 2, See *Assume all account balances are normal. **The partners made no Investments during the year. ***$53,000 of the note payable is due In May 2021. Required: 1. Prepare calculations that show how the profit should be allocated to the partners assuming the partnership agreement states that profit/(losses) are to be shared by allowing a $103,000 per year salary allowance to Williams, a $163,000 per year salary allowance to Adams, and the remainder on a 3:2 ratio. (Leave no cell blank. Enter "0" when the answer is zero.) Williams Adams Total Profit Salary allowance Balance of profit to be allocated Balance allocated on a 3:2 ratio Balance of profit Shares of the partners 2. Prepare the journal entry to close the Income Summary account to the partners' capital accounts. View transaction list Journal entry worksheet Record the closing of profit to capital. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2020 Record entry Clear entry View general journal 3. Prepare a statement of changes in equity and a classified balance sheet. MUSIC WORKS Statement of Changes in Equity For Year Ended December 31, 2020 Williams Adams Total Total 0S 0S 0 MUSIC WORKS Balance Sheet December 31, 2020 Assets Current assets Total current assets Property, plant and equipment Total assets Liabilities Current liabilities $ Total current liabilities Non-current liabilities: Total liabilities Equity Total equity Total liabilities and equity $ 0