Question 1 [50 points] Jerry Forrentes and Kent Brennan formed a partnership, The Grayson Group on March 1, 2013 by investing $120,000 and $130,000 respectively. The partnership agreement states that incomes and losses are to be shared on the basis of a salary allowance of $24,000 for Jerry Forrentes and $18,000 for Kent Brennan, 5% interest on their initial investments with any remainder shared on the ratio of beginning-of-period capital balances. Following is the February 28, 2014 adjusted trial balance, in alphabetical order. Account Balance a) Complete the income allocation schedule below. Accumulated Depreciation, Automobiles 100 Jerry Forrentes Kent Brennan Total Accumulated Depreciation, Building_ 190 Net income (loss): Advertising Expense 19,500 Salaries: Automobiles 14,800 Interest: Bonds Payable (due January, 2021) 19,800 Total salary and interest:_ Building 59,600 Remainder to be allocated: Cash 27,100 Remainder allocated between partners: Commissions Earned 27,300 Balance of net income (loss) to be allocated: Consulting Revenue Earned 19,700 Total to be allocated to each partner: Depreciation Expense, Automobiles 100 Depreciation Expense, Building 190 Interest Earned 19,100 b) Prepare a classified balance sheet for The Grayson Group at February 28, 2014. (select one) Interest Expense Interest Payable 13,100 Balance Sheet 12,200 (select one) Interest Receivable 50,800 Jerry Forrentes, Capital 120,000 Jerry Forrentes, Withdrawal 9,100 Kent Brennan, Capital 130,000 Kent Brennan, Withdrawal 16,700 Land 78,300 Mortgage Payable (due September, 2020) 10,700 Property Taxes Expense 14,600 Property Taxes Payable 10,900 Rent Earned 11,890 Rent Payable Rent Receivable Trademark 12,400 24,300 66,090