Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnership's first year of operation is 2017. Emily and James divide income and expenses equally. The partnership name is J&S Barbers, it is located at 1023 Broadway, New York, NY 10004, and its Federal ID number is 95-6767676. The 2017 financial statements for the partnership are presented below.

J&S Barbers Income Statement

for the Year Ending December 31, 2017

Gross income from operations		$372,300
Deductions:
Salaries to employees	$94,600
Payroll taxes	$14,500
Supplies	$9,000
Rent	$41,000
Short-term capital loss	$2,000
Charitable contributions	$500
Depreciation	$5,100
Net Income		$205,600
Partner's withdrawals (each partner)		$80,000

J&S Barbers Balance Sheet

as of December 31, 2017

Assets:
Cash		$100,450
Accounts Receivable		$10,000
Equipment	$32,000
Accum. Depreciation	($5,100)	$26,900	$137,350
Liabilities and Capital:
Accounts Payable		$29,750
Notes Payable		$22,000
Partners' Capital ($20,000 contributed by each partner)		$85,600	$137,350

Emily lives at 456 E. 70th Street, New York, NY 10006, and James lives at 436 E. 63rd Street, New York, NY 10012.

Required:

Complete J&S Barbers' Form 1065 and Emily and James' Schedule K-1. Do not fill in Schedule D for the capital loss, Form 4562 for depreciation, or Schedule B-1 related to ownership of the partnership. Make realistic assumptions about any missing data.