Before you begin, print out all the pages in this workbook.Part A (2019)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$100,000B$100,000C$160,000Opening capital balances are:A$70,000B$60,000C$70,000Interest rate is:5%The fixed ratio is:A2B3C5Required1Prepare year-end adjusting entries. No descriptions are necessary.2Allocate partnership profit or loss to each partner. Prepare the necessary adjusting entry.3Post the adjusting entries and complete the trial balance.4Prepare an income statement and statement of partners' capital for the year ended December 31, 2019 and a balance sheet at December 31.

Part B (2020)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$200,000B180,000C190,000$570,000Fair value of other assets from D$50,000b.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$18,000Required5Prepare necessary adjusting entries at December 31, 2020 to record the admission of partner D and the withdrawal of partner C. Show all calculations.

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 BalancesAccount TitleDebitCreditCash83,000Other Assets80,000Accounts Payable140,000A, Capital7,000B, Capital7,000C, Capital9,000163,000163,000On January 1, 2022 the partnership is liquidated.Other assets are sold for:$144,000Gains and losses are liquidated in a ratio of:A3B2D5Required6Print 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.7Prepare the journal entries to record the liquidation.