Keith Williams and Brian Adams were students when they formed a partnership several years ago for a parttime business called Music Works. Adjusted trial balance information for the year ended December appears below.

Account Balance Account Balance

Accounts payable $ Keith Williams, capital $

Accumulated depreciation Keith Williams, withdrawals

Brian Adams, capital Note payable, due May

Brian Adams, withdrawals Office supplies

Cash Revenues

Equipment Utilities payable

Expenses

Assume all account balances are normal.

The partners made no investments during the year.

$ of the note payable is due in May

Required:

Prepare calculations that show how the profit should be allocated to the partners assuming the partnership agreement states that profitlosses are to be shared by allowing a $ per year salary allowance to Williams, a $ per year salary allowance to Adams, and the remainder on a : ratio. Leave no cell blank. Enter when the answer is zero.

Prepare the journal entry to close the Income Summary account to the partners capital accounts.

Prepare a statement of changes in equity and a classified balance sheet.