Partnership A, B, and C is a law firm. You have been engaged as accountant to prepare financial statements for the year ended December 31, 2019. The partnership's trial balance is shown on the "2019 Tr. Bal." page (see tab below). 'Salary expenses' listed on the trial balance are each partners' withdrawals for the year. Partnership profits are allocated based first on salaries, then on interest on opening capital balances, then on a fixed ratio. Required 1 Prepare year-end adjusting entries. No descriptions are necessary. 2 Allocate partnership profit or loss to each partner. Prepare the necessary adjusting entry. 3 Post the adjusting entries and complete the trial balance. 4 Prepare an income statement and statement of partners' capital for the year ended December 31, 2019 and a balance sheet at December 31. a. On December 31, 2020 new partner D invests other assets into the partnership for a onequarter ownership interest. An equal amount of capital is contributed by A,B, and C to make up the difference. At December 31, 2020, the partners' capital balances are as follows: Fair value of other assets from D $50,000 b. Immediately after this, partner C withdraws from the partnership. She is paid in cash the balance in her capital account plus a bonus, contributed equally from the capital balances of A,B, and D. Bonus paid to C Required 5 Prepare necessary adjusting entries at December 31, 2020 to record the admission of partner D and the withdrawal of partner C. Show all calculations. The trial balance of A, B, and D at December 31, 2021 after all adjustments have been made is as follows: On January 1, 2022 the partnership is liquidated. Other assets are sold for: $144,000 Gains and losses are liquidated in a ratio of: Required 6 Print out the "Part. Liqu." page (see tab below). Complete the schedule. Assume any partner deficiency (debit balance) is repaid with cash by the applicable partner. 7 Prepare the journal entries to record the liquidation. Requ. 1 to 4 Requ. 5 \begin{tabular}{l|l} Requ. 6 to 7 & Gen. Jnl. \end{tabular} Alloc. Trial Bal. Fcl. Stmts. Part. Liqu. Hit F9 to update formulas (or set your formulas to automatically update) A,B, and C Trial Balance At December 31, 2019 Hit F9 to update formulas (or set your formulas to automatically update) A,B, and C Income Statement For the Year Ended December 31, 2019 A,B, and C Statement of Partners' Capital For the Year Ended December 31, 2019 A,B, and D Statement of Partnership Liquidation For the Day Ending January 1, 2022