KImble, Sykes, and Gerard open an accounting practice on January $1,2022,$ In Chicago, Illinols, to be operated as a partnership.

KImble and Sykes will serve as the senlor partners because of thelr years of experlence. To establish the business, Kimble, Sykes, and

Gerard contrlbute cash and other propertles valued at $$248,000,$$$200,000,$ and $$112,000,$ respectively. An articles of partnership

agreement is drawn up stipulating the following:

Personal drawings are allowed annually up to an amount equal to $10$ percent of the parther's beginning capltal balance for the year.

Profits and losses are allocated according to the following plan:

Each parther recelves an annual salary allowance of $$55$ per billable hours worked.

$2$ Interest is credited to the partners' capital accounts at the rate of $12$ percent of the beginning capital balance for the year.

Kimble and Sykes are eliglble for an annual bonus of $10$ percent of net Income after subtracting the bonus, salary allowance, and

Interest. The agreement also states that there will be no bonus if there is a net loss or if salary and interest result In a negatlve

remainder of net income to be distributed.

Any remaining partnership profit or loss is to be divided evenly among all partners.

On January $1,2023,$ the partners admit Nichols to the partnership. Nichols contributes cash directly to the business in an amount equal

to a $25$ percent Interest in the book value of the parthership property subsequent to this contribution. The partnershlp profit and loss

sharing agreement is not altered upon Nichols's entrance into the firm; the general provisions continue to be applicable.

The billable hours for the partners during the first three years of operation follow:

The partnership reports net Income $($loss$)$ for $2022$ through $2024$ as follows:

Each partner withdraws the maximum allowable amount each year.

Requlred:

a$.$ Prepare schedules that allocate each year's net Income to the parthers.

b$.$ Prepare in approprlate form a statement of partners' capital for the year ending December $31,2024.$

Complete this question by entering your answers in the tabs below.

Prepare schedules that allocate for $2022$ net income to the partners.

Note: Loss amounts should be indicated with a minus sign.