Facts

The partnership agreement of Walt, Henry and Victoria provides that profits and losses are to be divided among the partners as follows:

$1.$ Walt is to receive a salary allocation of $$15,000$ for managing the partnership business.

$2.$ Partners are to receive $10\%$ interest on their average partner capital balances during the year. Note: Drawings are excluded from the computation of average partner capital.

$3.$ Remaining profits$/$losses are to be divided as follows: Walt, $30\%$; Henry, $35\%$; and Victoria. $35\%.$

$4.$ Walt had a beginning capital account balance on January $1,2020$ of $$60,000$ and total drawings during the year of $$8,000.$

$5.$ Henry had a beginning capital account balance on January $1,2020$ of $$90,000$ and invested an additional $$30,000$ on September $1,2020.$

$6.$ Victoria had a beginning capital account balance of $$110,000$ on January $1,2020$ and invested an additional $$20,000$ on October $1,2020.$ Victoria had total drawings during the year of $$12,000.$

$7.$ In $2021,$ each partner had total drawings of $$10,000.$

$8.$ The partnership incurred a net loss of $$20,000$ during $2020$ and had net income of $$55,000$ during $2021.$

Requirements

A$.$ Prepare a schedule showing the allocation of the partnership net income or net loss for each year to each partner. Your schedule should show each component of the net loss or net income amount being allocated to the partner. Hint: refer to your class notes!

B$.$ Prepare a statement of partnership capital for the years ending December $31,2020$ and

December $31,2021.$

C$.$ Prepare the necessary journal entries to allocate the net loss to the partners' capital accounts and to close the partners' drawing accounts for each year. You may assume that the partnership's revenues and expenses have already been closed into the "Income Summary" account for each year.

D$.$ Your work must be prepared in good form using Excel. Make sure that your schedules fit neatly on the page, have the proper headings, dates, etc. and do not run "across" several pages. Points will be deducted for documents that are not in good form.