Bridget, Carlene and Desmond, attorneys-at-law, decided to form a partnership. They reached agreement on all major operational matters including their respective roles, positions and financial contributions as set out below. Bridget would contribute $1,700,000 as capital and extend to the partnership a loan of $700,000 to be repaid over 24 months. She had extensive business experience and would take on the role of managing partner. Carlene would contribute $1,400,000 as capital and would also extend to the partnership a loan of $500,000 to be repaid over a 12-month period. Carlene would assume the senior attorney role and would be responsible for the legal team. Desmond, recently called to the Bar, would contribute $500,000, as capital, at the start of the partnership, and a further $300,000, on July 1,202, on receipt of maturity proceeds from an existing investment. They agreed on the following financial arrangements: 1. Interest on capital was to be paid at 5% per annum. 2. No interest was to be charged on current account balances. 3. Interest on drawings was to be paid at 8% per annum. 4. Partnership salaries were agreed at: Bridget $400,000 per annum Carlene $260,000 per annum 8. The financial year of the partnership would run from January 1 to December 31 . The partnership was formed and operations commenced. 1. The following persons were employed as detailed below: 2. All capital contributions due on January 1, 202 were made by all partners. However. Desmond made his second capital contribution on September 1, 202 and not on July 1, 20gge as was previously agreed. + Interest on drawings is to be charged for the 12 -month period ending December 31,202. 5. The accountant prepared the account balances for the partnership for the period January 1,202 to December 31,202. (See Trial Balance below). Expenses Incurred Utilities Rent expense Stationery Office supplies Postage Motor vehicle expenses Repairs and maintenance Insurance Professional fees Wages and salaries 1,105,000 Staff training 105,000 Assets Motor vehicle 3,800,000 Office furniture 890,000 Computers 1,600,000 Short term investment 360,000 Debtors/Receivables 74,000 Bank balances 1,138,770 Cash balances 151,000 Other receivables 64,000 Capital balances Bridget Carlene 1,700,000 1,400,000 Desmond 800,000 Drawings taken by partners Bridget Page 5,7Q200+500 Drawings taken by partners \begin{tabular}{lr} \hline Bridget & 200,000 \\ \hline Carlene & 160,000 \\ \hline Desmond & 80,000 \\ \hline \end{tabular} Current balances Bridget Carlene Desmond 60,000 Partner's Loan Bridget Loan - 24 months duration 700,000 Required: 1. Calculate the following amounts to be included in the statement of profit or los (a) Wages and Salaries, showing exact amounts payable to each category o staff. (b) Interest payable on the partners' loans. Assume such interest amounts have not been paid. 2. Prepare the following: (a) the statement of profit or loss and appropriation account for the year endin December 31,202; Adjustments to the trial balance Depreciation is to be charged on the assets as follows: Motor vehicles - 20% Office furniture - 10% Computers - 25% The managing partner, having checked the salary paid, has indicated that the amount shown in the trial balance as paid is not correct. Kindly check and make any adjustment as required in keeping with the accrual principle. The trial balance does not include the loan interest due and payable to the respective partners. Kindly calculate and include in the financial statements. (b) the partners' current and capital accounts as of December 31,202; (c) the statement of financial position as at December 31,202; and (d) a single memorandum addressed to all in the partnership detailing the balances on their respective current accounts and advising them of their options. Bridget, Carlene and Desmond, attorneys-at-law, decided to form a partnership. They reached agreement on all major operational matters including their respective roles, positions and financial contributions as set out below. Bridget would contribute $1,700,000 as capital and extend to the partnership a loan of $700,000 to be repaid over 24 months. She had extensive business experience and would take on the role of managing partner. Carlene would contribute $1,400,000 as capital and would also extend to the partnership a loan of $500,000 to be repaid over a 12-month period. Carlene would assume the senior attorney role and would be responsible for the legal team. Desmond, recently called to the Bar, would contribute $500,000, as capital, at the start of the partnership, and a further $300,000, on July 1,202, on receipt of maturity proceeds from an existing investment. They agreed on the following financial arrangements: 1. Interest on capital was to be paid at 5% per annum. 2. No interest was to be charged on current account balances. 3. Interest on drawings was to be paid at 8% per annum. 4. Partnership salaries were agreed at: Bridget $400,000 per annum Carlene $260,000 per annum 8. The financial year of the partnership would run from January 1 to December 31 . The partnership was formed and operations commenced. 1. The following persons were employed as detailed below: 2. All capital contributions due on January 1, 202 were made by all partners. However. Desmond made his second capital contribution on September 1, 202 and not on July 1, 20gge as was previously agreed. + Interest on drawings is to be charged for the 12 -month period ending December 31,202. 5. The accountant prepared the account balances for the partnership for the period January 1,202 to December 31,202. (See Trial Balance below). Expenses Incurred Utilities Rent expense Stationery Office supplies Postage Motor vehicle expenses Repairs and maintenance Insurance Professional fees Wages and salaries 1,105,000 Staff training 105,000 Assets Motor vehicle 3,800,000 Office furniture 890,000 Computers 1,600,000 Short term investment 360,000 Debtors/Receivables 74,000 Bank balances 1,138,770 Cash balances 151,000 Other receivables 64,000 Capital balances Bridget Carlene 1,700,000 1,400,000 Desmond 800,000 Drawings taken by partners Bridget Page 5,7Q200+500 Drawings taken by partners \begin{tabular}{lr} \hline Bridget & 200,000 \\ \hline Carlene & 160,000 \\ \hline Desmond & 80,000 \\ \hline \end{tabular} Current balances Bridget Carlene Desmond 60,000 Partner's Loan Bridget Loan - 24 months duration 700,000 Required: 1. Calculate the following amounts to be included in the statement of profit or los (a) Wages and Salaries, showing exact amounts payable to each category o staff. (b) Interest payable on the partners' loans. Assume such interest amounts have not been paid. 2. Prepare the following: (a) the statement of profit or loss and appropriation account for the year endin December 31,202; Adjustments to the trial balance Depreciation is to be charged on the assets as follows: Motor vehicles - 20% Office furniture - 10% Computers - 25% The managing partner, having checked the salary paid, has indicated that the amount shown in the trial balance as paid is not correct. Kindly check and make any adjustment as required in keeping with the accrual principle. The trial balance does not include the loan interest due and payable to the respective partners. Kindly calculate and include in the financial statements. (b) the partners' current and capital accounts as of December 31,202; (c) the statement of financial position as at December 31,202; and (d) a single memorandum addressed to all in the partnership detailing the balances on their respective current accounts and advising them of their options