Tyler Gilligan and Matt Melnyk, two college friends, decided to set up a snow removal business called Sheridan Snow Removal Services. At the inception of the partnership. Tyler invested $4,000 cash and Matt invested $11,000 cash. Once formed, the partnership purchased equipment and a vehicle. Tyler estimates that the equipment purchased for $2.000 and the vehicle purchased for $10,000 have five-year useful lives with no residual value. He used the straight-line method to calculate depreciation expense. At the end of the first year of business. Tyler, who was studying accounting provided the following information: SHERIDAN SNOW REMOVAL SERVICES Income Statement Year ended December 31, 2021 Service revenue $50,420 Expenses Supplies expense $5,280 Depreciation expense 2,400 Salaries expense 29.250 36,930 Pront $13.490 Additional information: 1. 2 Salaries expense is $19.000 and $10.250 cash that was paid to Tyler and Matt, respectively, during the year. All revenues were collected in cash. All supplies were paid for in cash. At the end of the year, there were no supplies on hand. There is $18.890 in the bank account at December 31, 2021. 3. 4. 29,250 Salaries expense Profit 36,930 $13.490 Additional information: 1 2 3. 4. Salaries expense is $19,000 and $10.250 cash that was paid to Tyler and Matt, respectively, during the year. All revenues were collected in cash. All supplies were paid for in cash. At the end of the year, there were no supplies on hand. There is $18,890 in the bank account at December 31, 2021. Prepare a journal entry to correct the errors, if any, on the income statement. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Dec. 31 (To correct error.) Calculate the correct profit and the amount to be allocated to each partner. Correct profit T. Gilligan M. Melnyk Allocation of profit e Textbook and Media repare a statement of partners'equity for the year ended December 31, 2021. (List items that increase partner's equity first.) SHERIDAN SNOW REMOVAL SERVICES Statement of Partners'Equity Total T. Gilligan M. Melnyk $ $ Prepare a statement of partners equity for the year ended December 31, 2021. (List items that increase partner's equity first.) SHERIDAN SNOW REMOVAL SERVICES Statement of Partners' Equity T.Gilligan M. Melnyk Total $ I Prepare a balance sheet at December 31, 2021 (List Current Assets in order of liquidity) SHERIDAN SNOW REMOVAL SERVICES Balance Sheet Assets $ $ Partnerel Easih. SHERIDAN SNOW REMOVAL SERVICES Balance Sheet Assets Partners' Equity $ $ $ Partners' Equity $ $ $ $ > > $ Partners' Equity $ $