Requ. 1 to 4 Requ. 5 Requ. 6 to 7 Gen. Jnl. Alloc. Before you begin, print out all the pages in this workbook. Part A (2019) 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. 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: 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. Insert Table Chart Text Shape Media Comment Chapter 14 Assignment CP 14-8 Assume the following income statement and balance sheet information: Service revenue (all cash) $175 Operating expenses Salaries (all cash) 85 Net income $90 5 2020 2019 Current assets Cash Short-term invest. $1,250 100 $1,350 $1,600 200 $1,800 J Liabilities Borrowings 1.000 Stockholders' equity Common stock Retained earnings 550 750 $1,350 300 500 800 $1,800 Other information: The short-term investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non- current. No gain or loss occurred when common stock was repurchased. Required: Requ. 1 to 4 Requ. 5 Requ. 6 to 7 Gen. Jnl. Alloc. Before you begin, print out all the pages in this workbook. Part A (2019) 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. 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: 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. Insert Table Chart Text Shape Media Comment Chapter 14 Assignment CP 14-8 Assume the following income statement and balance sheet information: Service revenue (all cash) $175 Operating expenses Salaries (all cash) 85 Net income $90 5 2020 2019 Current assets Cash Short-term invest. $1,250 100 $1,350 $1,600 200 $1,800 J Liabilities Borrowings 1.000 Stockholders' equity Common stock Retained earnings 550 750 $1,350 300 500 800 $1,800 Other information: The short-term investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non- current. No gain or loss occurred when common stock was repurchased. Required
