ASSIGNMENT #3 Chapter 12 due March 27

The following is the adjusted trial balance of Kapiolani Kamehameha Partnership at the end of

their last fiscal year.

KAPIOLANI KAMEHAMEHA PARTNERSHIP Adjusted Trial Balance December 31, 2022
	Debit	Credit
Cash	$ 32,620
Accounts receivable (net)	81,000
Inventory, Jan 1, 2022	27,360
Prepaid insurance	3,900
Equipment	90,000
Accum. Depreciation. equipment		$ 16,000
Accounts payable		38,520
GST payable		2,880
Long term notes payable		11,600
Kapiolani, capital		75,000
Kapiolani, withdrawals	10,080
Kamehameha, capital		55,000
Kamehameha, withdrawals	7,200
Sales (net)		648,960
Purchases (net)	391,800
Selling expenses	112,380
Administrative expenses	91,620
TOTALS	$847,960	$847,960

Other information:

Year end inventory was $24,900. The partnership uses the periodic inventory system.

There were no changes in partners' capital accounts during the fiscal year.

The partnership agreement provides that partners are to be allowed 10% interest on their beginning of year capital account balances, and any residual net income is to be divided 3:2 (Kapiolani: Kamehameha).

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ASSIGNMENT #3 (Continued)

REQUIRED:

IN GOOD FORM, prepare a multiple-step Income Statement for fiscal 2022. At the bottom of the statement, prepare a schedule showing the division of net income.

IN GOOD FORM, prepare a Statement of Partners' Equity for fiscal 2022.

IN GOOD FORM, prepare a CLASSIFIED Balance Sheet at December 31, 2022.

KEY NUMBERS: Net income $ 50,700

Total assets $216,420