Question
The ledger of Tyler Lambert and Jayla Yost, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20Y3: Lambert
The ledger of Tyler Lambert and Jayla Yost, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20Y3:
Lambert and Yost
ADJUSTED TRIAL BALANCE
December 31, 20Y3
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1 | Cash | 34,000.00 |
|
2 | Accounts Receivable | 47,800.00 |
|
3 | Supplies | 2,000.00 |
|
4 | Land | 120,000.00 |
|
5 | Building | 157,500.00 |
|
6 | Accumulated Depreciation-Building |
| 67,200.00 |
7 | Office Equipment | 63,600.00 |
|
8 | Accumulated Depreciation-Office Equipment |
| 21,700.00 |
9 | Accounts Payable |
| 27,900.00 |
10 | Salaries Payable |
| 5,100.00 |
11 | Tyler Lambert, Capital |
| 135,000.00 |
12 | Tyler Lambert, Drawing | 50,000.00 |
|
13 | Jayla Yost, Capital |
| 88,000.00 |
14 | Jayla Yost, Drawing | 60,000.00 |
|
15 | Professional Fees |
| 395,300.00 |
16 | Salary Expense | 154,500.00 |
|
17 | Depreciation Expense-Building | 15,700.00 |
|
18 | Property Tax Expense | 12,000.00 |
|
19 | Heating and Lighting Expense | 8,500.00 |
|
20 | Supplies Expense | 6,000.00 |
|
21 | Depreciation Expense-Office Equipment | 5,000.00 |
|
22 | Miscellaneous Expense | 3,600.00 |
|
23 | Totals | 740,200.00 | 740,200.00 |
The balance in Yosts capital account includes an additional investment of $10,000 made on April 10, 20Y3.
Required: | |||
1. | Prepare an income statement for 20Y3. Create a separate statement indicating the division of net income to the partners. The partnership agreement provides for salary allowances of $45,000 to Lambert and $54,700 to Yost, allowances of 10% on each partners 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 partnership equity for 20Y3.* | ||
3. | Prepare a balance sheet as of the end of 20Y3.*
|
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