The balance of Morris's capital account includes an additional investment of $5,000 made on August 10 of the current year.

The ledger of Acosta and Morris, attorneys -at-law contains the following accounts and balances after adjustments have been recorded on December 31, the end of the current fiscal year. Cash Accounts Receivable Supplies Land $ 17,000 28,900 1,900 25,000 130,000 69,200 Building Accumulated Depreciation - Building Office Equipment Accumulated Depreciation - Office Equipment Accounts Payable Salaries Payable Juan Acosta, Capital Juan Acosta Drawings Marsha Morris, Capital Marsha Morris, Drawings Professional Fees Salary Expense Depreciation Expense - Building Property Tax Expense Heating and Lighting Expense Supplies Expense Depreciation Expense - Office Equipment Miscellaneous Expense 39,000 21,500 2,100 2,000 75,000 60,000 55,000 75,000 265,650 75,500 10,500 8,000 7.900 2,850 2,800 6,100 The balance in Morris's capital account includes an additional investment of S5, made on August of the current year. Instructions 1. Prepare an income statement for the current fiscal year, indicating the division of net income. The articles of partnership provides for salary allowances of $30,000 to Acosta and $40,000 to Morris, allowances of 12% on each partner's capital balance at the beginning of the fiscal year, and equal division of the remaining net income or net loss. 2. Prepare a statement of owner's equity for the current fiscal year 3. Prepare a balance sheet in report form as of the end of the current fiscal year