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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
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. Account Balance Account Balance Accounts payable $ 10,400 Keith Williams, capital** $ 37,300 Accumulated depreciation 84,000 Keith Williams, withdrawals 59, eee Brian Adams, capital** 31,000 Note payable, due May 2022*** 138,eee Brian Adams, withdrawals 69, eee Office supplies 25, eee Cash 218,800 Revenues 498,888 Equipment 318,000 Utilities payable 2,180 Expenses 111,000 "Assume all account balances are normal. "The partners made no Investments during the year ***$49.000 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 profitillosses) are to be shared by allowing a $99,000 per year salary allowance to Williams, a $159.000 per year salary allowance to Adams, and the remainder on a 3:2. ratio. (Leave no cell blank. Enter "o" when the answer is zero.) Williams Adams Total 0 Profit Salary aliowance Balance of profit to be allocated Balance allocated on a 32 ratio Balance of prot 5 0 0
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