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can you please solve the whole ques properly most of my ques is incorrect can you please solve it. Tyler Gilligan and Matt Melnyk, two
can you please solve the whole ques properly most of my ques is incorrect can you please solve it.
Tyler Gilligan and Matt Melnyk, two college friends, decided to set up a snow removal business called Carla Vista Snow Removal Services. At the inception of the partnership, Tyler invested $4,000 cash and Matt invested $11,000 cash. Once formed, the partnership purchased equipment and a vehicle. Tyler estimates that the equipment purchased for $2,000 and the vehicle purchased for $10,000 have five-year useful lives, with no residual value. He used the straight-line method to calculate depreciation expense. At the end of the first year of business, Tyler, who was studying accounting provided the following information: CARLA VISTA SNOW REMOVAL SERVICES Income Statement Year ended December 31, 2021 Service revenue $49,270 Expenses Supplies expense $5,140 Depreciation expense 2,400 Salaries expense 28,830 36,370 Profit $12.900 Additional information: h 1. Salaries expense is $18.440 and $10,390 cash that was paid to Tyler and Matt, respectively, during the year. 2. All revenues were collected in cash. 3. All supplies were paid for in cash. At the end of the year, there were no supplies on hand. 4. There is $18,300 in the bank account at December 31, 2021. Your answer is partially correct. Prepare a journal entry to correct the errors, if any, on the income statement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) Debit Credit Date Account Titles and Explanation Dec. 31 T. Gilligan, Drawings 2771 M. Melnyk, Drawings 7619 Salaries Expense 10390 (To correct error.) e Textbook and Media x Your answer is incorrect. Calculate the correct profit and the amount to be allocated to each partner. Correct profit $ 23290 T. Gilligan M. Melnyk Allocation of profit $ 6211 $ 17079 Your answer is partially correct. Prepare a statement of partners' equity for the year ended December 31, 2021. (List items that increase partner's equity first.) CARLA VISTA SNOW REMOVAL SERVICES Statement of Partners' Equity Year Ended December 31, 2021 T. Gilligan M. Melnyk Total Capital, Jan. 1 $ 4000 $ 11000 LA 15000 Less Y: Drawings 2771 7619 10390 1229 3381 4610 Add TE Profit/(Loss) 6211 17079 23290 Capital, Dec. 31 7440 S $ 20460 A 27900 CARLA VISTA SNOW REMOVAL SERVICES Balance Sheet December 31, 2021 Assets Current Assets Cash 18300 Property. Plant, and Equipment Equipment 2000 Less : Accumulated Depreciation-Equipment 1200 $ 800 Vehicles 10000 Less : Accumulated Depreciation-Vehicles 7 1200 8800 Total Property. Plant and Equipment 9600 Total Assets S 27900 Partners' Equity Current Liabilities T. Gilligan Capital $ 7440 M. Melnyk, Capital 20460 Total Current Liabilities $ 27900Step by Step Solution
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