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 | 34,300.00 |
|
2 | Accounts Receivable | 48,300.00 |
|
3 | Supplies | 2,100.00 |
|
4 | Land | 119,900.00 |
|
5 | Building | 157,900.00 |
|
6 | Accumulated Depreciation-Building |
| 66,800.00 |
7 | Office Equipment | 63,700.00 |
|
8 | Accumulated Depreciation-Office Equipment |
| 21,700.00 |
9 | Accounts Payable |
| 28,400.00 |
10 | Salaries Payable |
| 4,900.00 |
11 | Tyler Lambert, Capital |
| 135,500.00 |
12 | Tyler Lambert, Drawing | 50,200.00 |
|
13 | Jayla Yost, Capital |
| 87,700.00 |
14 | Jayla Yost, Drawing | 59,800.00 |
|
15 | Professional Fees |
| 396,900.00 |
16 | Salary Expense | 154,700.00 |
|
17 | Depreciation Expense-Building | 15,600.00 |
|
18 | Property Tax Expense | 12,300.00 |
|
19 | Heating and Lighting Expense | 9,000.00 |
|
20 | Supplies Expense | 5,600.00 |
|
21 | Depreciation Expense-Office Equipment | 5,300.00 |
|
22 | Miscellaneous Expense | 3,200.00 |
|
23 | Totals | 741,900.00 | 741,900.00 |
The balance in Yosts capital account includes an additional investment of $10,200 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 $45,400 to Lambert and $54,600 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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Accounts, Labels and Amount Descriptions
Accounts | Labels | Amount Descriptions |
Accounts payable | Current assets | Add partner withdrawals |
Accounts receivable | Current liabilities | Balance, December 31, 20Y3 |
Accumulated depreciation-Building | Operating expenses | Balance, January 1, 20Y3 |
Accumulated depreciation-Office equipment | Property, plant, and equipment | Balances after realization |
Building | Balances before realization | |
Cash | Capital additions | |
Depreciation expense-Building | Partner withdrawals | |
Depreciation expense-Office Equipment | Net income | |
Heating and lighting expense | Net loss | |
Jayla Yost, capital | Net income for the year | |
Land | Net loss for the year | |
Miscellaneous expense | Payment of liabilities | |
Office equipment | Sale of assets and division of gain | |
Professional fees | Total assets | |
Property tax expense | Total current assets | |
Salaries payable | Total liabilities | |
Salary expense | Total liabilities and partners equity | |
Supplies | Total partners equity | |
Supplies expense | Total Property, plant, and equipment | |
Tyler Lambert, capital | Total operating expenses |
X
Income Statement and Allocation to Partners
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 $45,400 to Lambert and $54,600 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. 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, enter that amount as a negative number using a minus sign.
Lambert and Yost |
Income Statement |
For the Year Ended December 31, 20Y3 |
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