example 11

PARTNERSHIP FINANCIAL STATE MENTS and $40,000 respectively. Lee and May made Lee and May had drawings of $1,500 and $2,000 Assume that Lee and May's capital balances at Jan 1 2018 are 528,000 Example 10 For Starrite Co. Sark $20,000 and Jins Nyland S18,000. During the year $30,000, and the partners share income Co, heginning balances on January 1, 201s equally drawings were Stark 58,000 and Nyland $5,000. Net income was $30,000. statement for the year (a) Prepare the partners' capital s b) Prepare the owners' equity section of the balance sheet at December 31, 2018. Waldoet partnership has the follow ing accounts: $100,000 Rent Expense Safaries Expense Advertising Expense 1,000 750 Uiilities Expense Partnership income and losses are shared 70:30 between partners wall (70%) and Dorf (30%) wall and Dorf are or $8,000 and $5,000 nstructionseenes Expense (a) Prepare an Income Statement for the year ended December 31, 2018. b) Prepare the schedule of partner's income allocation (show it below the income statement)