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, 2016:

The balance in Yosts capital account includes an additional investment of $9,500 made on April 10, 2016.

Required:

1.

Prepare an income statement for 2016. Create a separate statement indicating the division of net income to the partners. The partnership agreement provides for salary allowances of $44,600 to Lambert and $55,200 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 2016.*

3.

Prepare a balance sheet as of the end of 2016.*

* Refer to the information given and the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If a net loss is incurred or there is a decrease in partners equity, enter that amount as a negative number using a minus sign.

Labels and Amount Descriptions

Lambert and Yost ADJUSTED TRIAL BALANCE December 31, 2016 ACCOUNT TITLE 33,700.00 7,400.00 1,900.00 120,100.00 157300.00 1 Cash Accounts Receivable Supplies 4 Land Building 6 Accumulated Depreciaion-Building 7Office Equipment 8 Accumulated Depreciation-Office Equipment 9 Accounts Payable 10 Salaries Payable 11 Tyler Lambert, Capital 67,000.00 63,500.00 22,200.00 27,700.00 5,600.00 134,700.00 49,700.00 Tyler Lambert, Drawing 13Jayla Yost, Capital 14 Jayla Yost, Drawing 15 Income Summa 16 Professional Fees 17 Salary Expense 18 Depreciation Expense-Building 19 Property Tax Expense 88,200.00 60,000.00 393,400.00 154,200.00 15,800.00 12,500.00 8,300.00 6,100.00 4,500.00 3,800.00 738,800.00 Heating and Lighting Expense 21Supplies Expense 22 Depreciation Expense-Office Equipment 23 Miscellaneous Expense 4 Totals 738,800.00 Amount Descriptions Add partner withdrawals Balance, December 31, 2016 Balance, January 1, 2016 Balances after realization Balances before realization Capital additions Less partner withdrawals Net income Net loss Net income for the year Net loss for the year Payment of liabilities Sale of assets and division of gain Total assets Total current assets Total liabilities Total liabilties and partners' equity Total partners' equity Total plant assets Total operating expenses Current assets Current liabilities Operating expenses Plant assets 1. Prepare an income statement for 2016. Create a separate statement indicating the division of net income to the partners. The partnership agreement provides for salary allowances of $44,600 to Lambert and $55,200 to Yost, allowances of 10% on each partner's capital balance at the beginning of the fiscal year, and equai division of the remaining net income or net loss. Refer to the information given and the ists of Labeis and Amount Descriptions provided for the exact wording of the answer choices for text entries lf a net loss is incurred, enter that amount as a negative number using a minus sign. Lambert and Yost Income Statenent For the Year Ended December 31, 2016 $393,400.00 1 Professional fees 2Operating expenses: S154,200.00 15,800.00 12,500.00 8,300.00 6,100.00 4,500.00 3,800.00 Salary expense 4 accumulated depreciation-Building S Property tax expense 6Heating and lighting expense 7Supplies expense 8 Depeciation expense-Office Equipment 9 Miscellaneous expense 10Total operating expenses 11 Net income 205,200.00 188,200.00 Lambert and Yost Allocation of Net Income to Partners For the Year Ended December 31. 2016 Tyler Lambert Jayla Yost Total 2 Division of net income: $55,200.00 8,820.00 33,055.00 $97,075.00 $44,600.00 13,470.00 33,055.00 S91125.00 $99,800.00 22,290.00 66,110.00 $188,200.00 Salary allowance Interest allowance S Remaining income (loss) (11) 6 Net income Statement of Partnership Equity 2. Prepare a statement of partnership equity for 2016. Refer to the information given and the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If there is a decrease in partner's equity, enter that amount as a negative number using a wnus sign. Lambert and Yost Statement of Partnership Equity For the Year Ended December 31. 2016 Tyler Lambert Jayla Yost Total 8,700.00 S213 S134,700.00 S213,400.00 2Balance, January 1, 2016