Partial Financial Statements

Randy Nolan and Jill Brenton formed a partnership on May 1, 20-1. Nolan contributed $58,000 and Brenton contributed $23,700. During the year, Nolan contributed an additional $11,800. The partnership agreement states that Nolan is to receive $15,600 and Brenton is to receive $49,500 as a salary allowance. Any remaining net income is to be divided as follows: Nolan, 40% and Brenton, 60%. The partnership earned net income of $109,800 for the fiscal year ending April 30, 20-2. During the first year of operation, Nolan and Brenton withdrew $15,500 and $41,500, respectively.

Question Content Area

1. Prepare the lower portion of the income statement showing the allocation of net income between Nolan and Brenton for the fiscal year ended April 30, 20-2.

Net income			$
Allocation of net income:	R. Nolan	J. Brenton	Total
Salary allowances	$	$	$
Remaining income	$	$	$
Allocation of net income	$	$	$

Prepare a statement of partners' equity, showing each individual partner's equity for the fiscal year ended April 30, 20-2. If an amount box does not require an entry, leave it blank.

	R. Nolan	J. Brenton	Total
Capital, May 1, 20-1	$	$	$
Additional investments during the year	$	$	$
	$	$	$
Net income for the year	$	$	$
	$	$	$
Withdrawals	$	$	$
Capital, April 30, 20-2	$	$	$