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Keith Williams and Brian Adams were students when they formed a partnership several years ago for a part-time business called Music Works. Adjusted trial balance

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Keith Williams and Brian Adams were students when they formed a partnership several years ago for a part-time business called Music Works. Adjusted trial balance Information for the year ended December 31, 2020, appears below. Balance Account Account Accounts payable Accumulated depreciation Brian Adams, capital". Brian Adams, withdrawals Cash Equipment Expenses $ 10,000 Keith Willians, capital 80,000 Keith Williams, withdrawals 27,000 Note payable, due May 2022*** 65,000 Office supplies 214,000 Revenues 310,000 Utilities payable 187,000 Balance $ 33,380 55,000 13e, ese 21,800 490,000 1,700 "Assume all account balances are normal **The partners made no investments during the year ***$45,000 of the note payable is due in May 2021 Required: 1. Prepare calculations that show how the profit should be allocated to the partners assuming the partnership agreement states that profit losses) are to be shared by allowing a $95,000 per year salary allowance to Williams, a $155.000 per year salary allowance to Adams, and the rematnder on a 3.2 ratio (Leave no cell blank. Enter "0" when the answer is zero.) Williams Adams Total Proft Salary allowance Balance of profit to be allocated Balance allocated on a 32 ratio Balance of profit Shares of the partners 2. Prepare the journal entry to close the Income Summary account to the partners' capital accounts. View transaction list Journal entry worksheet Record the closing of profit to capital. Note: Enter debits before credits, Date General Journal Debit Credit Dec 31, 2020 a Record entry Clear entry View general journal 3. Prepare a statement of changes in equity and a classified balance sheet. MUSIC WORKS Statement of Changes in Equity For Year Ended December 31, 2020 Williams Adams Total Total Balance Sheet December 31, 2020 Assets Current assets Total current assets Property, plant and equipment Total assets Liabilities Current liabilities: *Total current liabilities Non-current liabilities: Total liabilities Equity Total equity

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