5.26.2021 Protected View O Search (Alt+Q) las Data Review View Help C D E F G H J K Partnership A, B, and C is a law firm. You have been engaged as accountant to prepare financial statements for the year ended December 31, 2019. The partnership's trial balance is shown on the "2019 Tr. Bal." page (see tab below). 'Salary expenses' listed on the trial balance are each partners withdrawals for the year. Partnership profits are allocated based first on salaries, then on interest on opening capital balances, then on a fixed ratio. Salary allocation amounts are: A B C $100,000 $100,000 $160,000 Opening capital balances are: A $70,000 B $60,000 C $70,000 Interest rate is: 5% 4 C The fixed ratio is: A B Hitr 5 5 6 27 Required 28 29 30 31 32 1 Prepare year-end adjusting entries. No descriptions are necessary. 2 Allocate partnership profit or loss to each partner, Prepare the necessary adjusting entry. 3 Post the adjusting entries and complete the trial balance. 33 34 4 Prepare an income statement and statement of partners' capital for the year ended Requ. 1 to 4 Requ. 5 Requ. 6 to 7 Gen. In Trial Bal Alloc. Fcl. Sunts. Part. L W Review View Help D E $100,000 $160,000 capital balances are: = rest rate is: $70,000 $60,000 $70,000 5% e fixed ratio is: A B C 2 3 44 5 FL G Required 1 Prepare year-end adjusting entries. No descriptions are necessary. 2 Allocate partnership profit or loss to each partner. Prepare the necessary adjusting entry. 3 Post the adjusting entries and complete the trial balance. 4 Prepare an income statement and statement of partners' capital for the year ended December 31, 2019 and a balance sheet at December 31. Formulas Data Review View Help B C D E F G H Part B (2020) K N a. On December 31, 2020 new partner D invests other assets into the partnership for a one- quarter ownership interest. An equal amount of capital is contributed by A, B, and C to make up the difference. At December 31, 2020, the partners capital balances are as follows: A B $200,000 180,000 C 190.000 $570,000 Fair value of other $50,000 assets from D b. Immediately after this, partner C withdraws from the partnership. She is paid in cash the balance in her capital account plus a bonus, contributed equally from the capital balances of A, B, and D. Bonus paid to C $ 18,000 Required S Prepare necessary adjusting entries at December 31, 2020 to record the admission of partner D and the withdrawal of partner C. Show all calculations. 2 Assignment 5.26.2021 Protected View O Search (Alt-Q) nulas Data Review View Help B C D 8 F G H Part C (2021 and 2022) The trial balance of A, B, and D at December 31, 2021 after all adjustments have been made is as follows: Adjusted Balances Account Title Debit Credit Cash 83,000 Other Assets 80,000 Accounts Payable 140,000 A, Capital 7.000 2 B, Capital 7,000 3 C, Capital 9.000 14 163,000 163,000 PETROAN22222222 On January 1, 2022 the partnership is liquidated. Other assets are sold for: $144,000 Gains and losses are liquidated in a ratio of: A B 2 D Required 5 6 Print out the "Part. Liqu." page (see tab below). Complete the schedule. Assume any partner deficiency (debit balance) is repaid with cash by the applicable partner. 7 Prepare the journal entries to record the liquidation. Close Requ. 1 to 4 Requ. 5 Requ. 6 to 7 Trial Bal. Gen. In Alloc Ecl. Stmts. Pa Chapter 12 Assignment 5.26.2021 Protected View O Search (Alt+Q) age Layout Formulas Data Review View Help D E F C A B A, B, and C GENERAL JOURNAL Debit Credit 2 3 Description 4 5 .26.... 6 e use... 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 do I want to save? 30 Close Requ. 1 to 4 Requ: 5 Requ. 6 to 7 Gen. Jnl. Alloc Trial Bal Fel. Stmts Part Type here to search er 12 Assignment 5.26.2021 Protected View ormulas Data Review View Help 9 O Search (Alt+Q) 1 22 23 24 25 26 27 28 29 30 B Amount of profit Salary allocation Balance Interest allocation: N M K H DEF G C Total A $200,000 0 200,000 A B Opening Rate cap. 5% 5% 5% C 0 0 200,000 Balance Fixed ratio allocation A 20% $0 B 30% $0 C 50% $0 0 $200,000 this needs to be SO Balance Allocated to partners $0 $0 $0 input values Hit F9 to update formulas (or set your formulas to automatically update) 32 33 34 35 Requ. 1 to 4 Requ. 5 Requ. 6 to 7 Gen. Jnl. Alloc. Trial Bal. Fel Stmts. Part. Liqu Copyright 1234 A B C [E F G HI Unadjusted Balances A, B, and C Trial Balance At December 31, 2019 Adjusting Entries Adjusted Balances Credit # Debit Credit # Debit Credit 90,000 300,000 50,000 160,000 0 180,000 0 200,000 0 6.... se 5 6 7 Cash 8 Accounts Receivable 9 Accounts Payable 10 A, Capital 11 A, Withdrawals 12 B, Capital 13 B, Withdrawals 14 C, Capital 15 C, Withdrawals 16 Income Summary Account Title Debit 90,000 300,000 50,000 160,000 180,000 200,000 0 500,000 300,000 110,000 140,000 150,000 0 0 1,090,000 1,090,000 Hit F9 to update formulas (or set your formulas to automatically update) 17 Fees Revenue 500,000 18 Office Expense 300,000 19 Salaries Expense - A 110,000 20 Salaries Expense - B 140,000 24 25 26 222222 21 Salaries Expense - C 150,000 1,090,000 1,090,000 23 input values Search (Alt-a) Chapter 12 Assignment 5.26.2021 Protected View but Formulas Data Review View Help B C D E F G H K 2 3 A, B, and C Income Statement For the Year Ended December 31, 2019. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 A, B, and C Statement of Partners Capital For the Year Ended December 31, 2019 A Total 18 19 Bal. at Jan 1, 2019 20 21 22 23 Bal. at Dec. 31, 2019 24 25 26 A, B, and C Balance Sheet 27 At December 31, 2019 28 29 Assets Liabilities 30 31 32 33 Partners Equity 34 35 36 37 38 39 40 41 42 43 44 45 46 Close Requ. 1 to 4 Requ. 5 Requ. 6 to 7 Gen. Jnj. Alloc. Trial Bal Fd. Stmts. Par earch i M N 0 P A, B, and D Statement of Partnership Liquidation For the Day Ending January 1, 2022 E F G H J K Opening balance Allocation of gain (loss) Amount ABO D 0 R 5 Accounts Cash Other assets payable Partners' capital A B Ratio D