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Tyler Gilligan and Matt Melnyk, two college friends, decided to set up a snow removal businesscalled Ivanhoe Snow Removal Services. At the inception of the

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Tyler Gilligan and Matt Melnyk, two college friends, decided to set up a snow removal businesscalled Ivanhoe 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 residualvalue. 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: IVANHOE SNOW REMOVAL SERVICES Income Statement Year ended December 31, 2021 Service revenue $51.950 Expenses Supplies expense $6.130 Depreciation expense 2.400 Salaries expense 31.170 39,700 Profit $12,250 Additional Information 1 2 3. Salaries expense is $21.000 and 510,090 cash that was paid to Tyler and Matt, respectively during the year. All revenues were collected in cast All supplies were paid for in cash. At the end of the year, there were no supplies on hand. There is $17.650 in the bank account at December 31, 2021 4. 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) Debit Date Account Titles and Explanation Dec 31 Credit ITo correct error) cTextbook and Media Calculate the correct pront and the amount to be allocated to each partner, Correct pront T.Gilligan M. Melnyk Allocation of pront Prepare a statement of partners equity for the year ended December 31, 2021. (List items that increase partner's equity first) IVANHOE SNOW REMOVAL SERVICES Statement of Partners' Equity T. Gilligan M. Melnyk Total e Textbook and Media IVANHOE SNOW REMOVAL SERVICES Balance Sheet Assets $ Partners' Equity $

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