Partnership A, B, and is a law firm. You have been engaged as accountant to pr financial statements for the year ended December 31, 2019. the partnership's trial balance is shown on the "2019 Tr. Bal." page (see tab belo 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 ope balances, then on a fixed ratio. Salary allocation amounts are: $100,000 $100,000 $160,000 Opening capital balances are: $70,000 $60,000 $70,000 Interest rate is: 5% The fixed ratio is: WN Required 1 Prepare year-end adjusting entries. No descriptions are necessary, 2 Allocate partnership profit or loss to each partner. Prepare the necessary adjust 3 Post the adjusting entries and complete the trial balance. 4 Prepare an income statement and statement of partners' capital for the year en December 31, 2019 and a balance sheet at December 31. Part B (2020) a. On December 31, 2020 new partner invests other assets into the partnersh quarter ownership Interest. An equal amount of capital is contributed by A, B, up the difference. At December 31, 2020, the partners' capital balances are a $200,000 180,000 190,000 $570,000 Fair value of other assets from D $50,000 b. Immediately after this, partner C withdraws from the partnership. She is paid balance in her capital account plus a bonus, contributed equally from the cap of A, B, and D. Bonus paid to C $ 18,000 Required Prepare necessary adjusting entries at December 31, 2020 to record the adm A, B, and C GENERAL JOURNAL Description Debit A, B, and C Trial Balance At December 31, 2019 Adjusting Entries Debil Credit Adjusted Unad usted Balances Deble Credit 90.000 400.000 40,000 120.000 170,000 Account Title Cash Accounts Receivable Accounts Payable A, Capital A, Withdrawals B, Capital B, Withdrawals C. Capital Withdrawals Income Summary Fees Revenue Office Expense Salaries Expense - A Salaries Expense - B Salaries Expense- 160.000 870,000 500,000 130,000 140,000 100.000 1.360.000 1 360,000 A, B, and C Income Statement For the Year Ended December 31, 2019 360,000 Salary A/C Interest on capital A/C profit and loss adjustment A/c 10,000 370,000 370,000 370,000 A, B, and C Statement of Partners' Capital For the Year Ended December 31, 2019 Total Bal. at Jan 1, 2019 Add: Interest on Capital $70,000 $3,500 $60,000 $3,000 $70,000 $3,500 Loss: Profit and loss adjst Bal. at Dec 31, 2019 74,000 $500 111,000 $48.000 185,000 $1,115,000 A, B, and C Balance Sheet At December 31, 2019 Assets Liabilities Partners' Equity AB, and D Statement of Partnership Liquidation For the Day Ending January 1, 2022 Cash Other assets Accounts payable Partners' capital Opening balance Allocation of gain (loss) Amount Ratio