BIU V ilil Merge & Center Format Painter Clipboard Font Alignment -e 2 fx B M N D E G 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: $100,000 $100,000 $160,000 B Opening capital balances are: $70,000 $60,000 $70,000 Interest rate is: 5% The fixed ratio is: B 3 5 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. Requ. 1 to 4 Requ. 5 Requ. 6 to 7 Gen. Jnl. Alloc. Trial Bal. Fcl. Stmts. Part. Liqu Type here to search Paste Format Painter BI U ER a. Av Merge & Clipboard 5 Font Alignment Q10 X fr B D F G H 1 2 3 Part C (2021 and 2022) 4 5 6 7 8 9 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 B, Capital 7,000 C, Capital 9,000 163,000 163,000 On January 1, 2022 the partnership is liquidated. Other assets are sold for: $144,000 Gains and losses are liquidated in a ratio of: 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 B D 3 2 5 Required 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. Requ. 1 to 4 Requ. 5 Requ. 6 to 7 Gen. Jnl. Alloc Trial Bal. Fel. Stmts. Par Type here to search OH T Chapter 12 Assignment revised 051620 - Excel Search ome Insert Draw Page Layout Formulas Data Review View Help Picture Format Eut General Copy Format Painter === 25 Wrap Text A3 Merge & Center BIU $ % 98 card 5 Font Alignment Number X fo B D E F G H L O Part B (2020) a. On December 31, 2020 new partner Dinvests other assets into the partnership for a one- quarter ownership interest. An equal amount of capital is contributed by A, B, and to make up the difference. At December 31, 2020, the partners' capital balances are as follows: A $200,000 180,000 190,000 $ 570,000 B O Fair value of other assets from D $50,000 b. Immediately after this, partner 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 5 Prepare necessary adjusting entries at December 31, 2020 to record the admission of partner D and the withdrawal of partner C. Show all calculations. Alloc Trial Bal Fel. Stits Gen. Inl. Copyright Part. Liqu. Requ. 1 to 4 Requ. 5 Requ. 6 to 7 O Type here to search AutoSave Off Chapter 12 Assignment_revised 051620 - Excel File Home Insert Draw Page Layout Formulas Data Review View Help Calibri 12 X cut Copy Format Painter Paste ' a-A- 2 Wrap Text Merge & C Clipboard Font 2 Alignment A1 B D E F 1 A, B, and c GENERAL JOURNAL 2 3 4 Description Debit Credit 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 20 29 30 31 32 Requ. 1 to 4 Requ. 5 Requ. 6 to 7 Gen. Jnl. Alloc. Trial Bal Fel. Stmts. Type here to search o RA Save OH Chapter 12 Assignment_revised 051620 - Excel Search Home Insert Draw Page Layout Formulas Data Review View Help Calibri 12 X cut La copy Format Painter - A A 2 Wrap Text General BTV OA Merge & Center $ % 58 - Clipboard 5 Font Alignment F Number input values B D EF G H 1 M N B. Amount of profit Salary allocation Balance Interest allocation: Total $200,000 0 200,000 Opening cap. Rate 5% 5% 5% 0 ol 200,000 A B Balance Fixed ratio allocation A B C Balance Allocated to partners SO 20% 30% 50% SO $0 0 $200,000 - 50 $o SO So input values Hit F9 to update formulas (or set your formulas to automatically update) Requ. 1 to 4 Requ. 5 Requ. 6 to 7 Gen, inl. Alloc. Trial Bal Fl. Stmts Part. Liqu Copyright + Type here to search AutoSave On Chapter 12 Assignment evised 051620 - Excel File Home Insert Draw Page Layout Formulas Data Review View Help Calibri - 12 Xcut Copy Format Painter Clipboard - AA ZEE a.A- Number 13 Wrap test Merge Center $ % 9 Conditional Formatas Formatting tables Tont Number 620 B C H 1 2 K LE F A, B, and Trial Balance At December 31, 2019 Adjusting Entries Debit Credit # # Unadjusted Balances Debit Credit 90,000 300,000 50,000 160,000 180,000 5 6 Account Title 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 17 Fees Revenue 18 Office Expense 19 Salaries Expense - A 20 Salaries Expense-B 21 Salaries Expense C 22 Adjusted Balances Debit Credit 90,000 300,000 50.000 160,000 0 180.000 0 200,000 0 D 500,000 300,000 110.000 140,000 150,000 1,090,000 1.090.000 200,000 500,000 300,000 110,000 140,000 150,000 1,090,000 1,090,000 0 0 23 24 25 input values Hit F9 to update formulas for set your formulas to automatically update) 26 27 Requ. 110 4 Regu. 5 Requ. 6 to Gen Inl Alloc Trial Bal. Fel. Stints Part. Liqu Copyright Type here to search i File Home Insert 620 - Excel Draw Page Layout Formulas Data Review View Calibri Paste 12 & Cut Copy Format Painter Clipboard - A BIU 2 Wrap Merge Font A1 Alignment f B D E F 2 G H A, B, and c 3 Income Statement For the Year Ended December 31, 2019 5 6 7 8 9 10 11 12 13 14 A, B, and c 15 Statement of Partners' Capital 16 For the Year Ended December 31, 2019 17 18 19 Bal, at Jan 1, 2019 20 21 22 23 Bal.at Dec. 31, 2019 24 25 A, B, and 26 Balance Sheet 27 At December 31, 2019 28 29 Assets Liabres 30 31 32 33 Partners' Equity 34 35 36 37 Total 40 41 Requ. 1 to 4 Requ. 5 Requ. 6 to 7 Gen. Inl. Alloc. Trial Bal Fel. Stmts. Type here to search o Excel Search ne Insert Draw Page Layout Formulas Data Review View Help Calib - 12 - A A General py amat Painter BIU 2 Wrap Text Merge & Center H $ %) *.8 - Condition Formatting Font Alignment Number X fi B C D E F G H N o T A, B, and D Statement of Partnership Liquidation For the Day Ending January 1, 2022 Cash Other assets Accounts payable Partners' capital B A D Opening balance Allocation of gain (loss) Amount Ratio A B D Alloc Requ 1 to 4 Requ. 6 to 7 Gen. Jol. Requ. 5 Copyright Part. Liqu. Trial Bal Fc. Stmts. O BE Type here to search A