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Keith Williams and Brian Adoms were students when they formed a partnership neveral years ago for a par-lime business called Music Works. Adjusted trial bolance
Keith Williams and Brian Adoms were students when they formed a partnership neveral years ago for a par-lime business called Music Works. Adjusted trial bolance information for the year ended December 31, 2023, appears below. -Assume all account balances are normal. "The partners made no investments during the year. wg41,000 of the note payable is due in May 2024. Required: 1. Prepare calculations that show how the profit should be allocated to the partners assuming the partnership agreement states that profitifosses) are to be shared by allowing a $91,000 per yeor solary allowance to Williams, a 5151,000 per year salary alliowance to Adams, and the remainder on a 32 ratio. (Leave no cell blank. Enter " 0 when the answer is reco) 2. Prepare the joumal entry to close the Income Summary account to the partners' capital accounts. Journal entry worksheet Note: Enter debits before credits. 3. Prepare a statement of changes in equity and a classified balance sheet
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