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 2020. Emily and James divide income and expenses equally. The partnership name is J&S Barbers, it is located at 1023 Lexington Avenue, New York, NY 10128, and its Federal ID number is 95-6767676. The 2020 financial statements for the partnership are presented below. $349,000 1,000 J&S Barbers Income Statement for the Year Ending December 31, 2020 Gross income from operations Interest income Deductions: Salaries to employees Payroll taxes Supplies Rent Depreciation Short-term capital loss Non-deductible entertainment Charitable contributions Net income Partners' withdrawals (each partner) 100,000 11,000 8,000 90,000 32,000 2,000 3,000 1,000 $103,000 $50,000 $82,000 10,000 J&S Barbers Balance Sheet as of December 31, 2020 Assets: Cash Accounts receivable Land $ 3,000 Equipment 32,000 Accumulated depreciation (32,000) Liabilities and Capital: Accounts payable Notes payable Partners capital ($20,000 contributed by each partner) 3,000 $95,000 $30,000 22,000 43,000 $95,000 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-1s. 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. 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 2020. Emily and James divide income and expenses equally. The partnership name is J&S Barbers, it is located at 1023 Lexington Avenue, New York, NY 10128, and its Federal ID number is 95-6767676. The 2020 financial statements for the partnership are presented below. $349,000 1,000 J&S Barbers Income Statement for the Year Ending December 31, 2020 Gross income from operations Interest income Deductions: Salaries to employees Payroll taxes Supplies Rent Depreciation Short-term capital loss Non-deductible entertainment Charitable contributions Net income Partners' withdrawals (each partner) 100,000 11,000 8,000 90,000 32,000 2,000 3,000 1,000 $103,000 $50,000 $82,000 10,000 J&S Barbers Balance Sheet as of December 31, 2020 Assets: Cash Accounts receivable Land $ 3,000 Equipment 32,000 Accumulated depreciation (32,000) Liabilities and Capital: Accounts payable Notes payable Partners capital ($20,000 contributed by each partner) 3,000 $95,000 $30,000 22,000 43,000 $95,000 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-1s. 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
