Question 1 [50 points]

Adam Uppe and Kent Brennan formed a partnership, Ingersoll Antiques on August 1, 2013 by investing $130,000 and $110,000 respectively. The partnership agreement states that incomes and losses are to be shared on the basis of a salary allowance of $27,000 for Adam Uppe and $18,000 for Kent Brennan, 5% interest on their initial investments with any remainder shared equally. Following is the July 31, 2014 adjusted trial balance, in alphabetical order.

Question 1 [50 points] Adam Uppe and Kent Brennan formed a partnership, Ingersoll Antiques on August 1, 2013 by investing $130,000 and $110,000 respectively. The partnership agreement states that incomes and losses are to be shared on the basis of a salary allowance of $27,000 for Adam Uppe and $18,000 for Kent Brennan, 5% interest on their initial investments with any remainder shared equally. Following is the July 31, 2014 adjusted trial balance, in alphabetical order. Balance Total a) Complete the income allocation schedule below. Adam Uppe Kent Brennan Net income (loss): Salaries : Interest Total salary and interest Remainder to be allocated : Remainder allocated between partners:... Balance of net income (loss) to be allocated: Total to be allocated to each partner:.. Account Accounts Payable Accounts Receivable Accumulated Depreciation, Automobiles Accumulated Depreciation, Building, Adam Uppe, Capital Adam Uppe, Withdrawal Automobiles Building, Cash Commissions Earned Consulting Revenue Earned Copyright Depreciation Expense, Automobiles Depreciation Expense, Building Interest Earned. Interest Expense Kent Brennan, Capital Kent Brennan, Withdrawal Land -Term Notes Payable Long-term Investment Shares Mortgage Payable (due March, 2022) Notes Receivable (due December, 2014). Property Taxes Expense Rent Earned Rent Payable Salaries Expense Salaries Payable 17,800 16,200 120 190 130,000 16,400 61,500 54,600 39,600 3,300 46,010 18,010 120 190 12,400 6,000 110,000 13,800 36,300 10,600 43,600 19,500 61,000 9,600 21,800 19,300 19,600 5,500 b) Prepare a classified balance sheet for Ingersoll Antiques at July 31, 2014. (select one) Balance Sheet (select one) x +++ + +