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

Trial Balance

December 31, 20Y3

The balance in Yost's capital account includes an additional investment of $10,000 made on April 10, 20Y3.
Instructions
1. Prepare an income statement for 20Y3, indicating the division of net income. The partnership agreement provides for salary allowances of $45,000 to Lambert and $54,700 to Yost, allowances of 10% on each partner's 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?

Transcribed Image Text:

Debit Balances 34,000 47,800 2,000 120,000 157,500 Credit Balances Cash Accounts Receivable Supplies Land Building Accumulated Depreciation-Building Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Salaries Payable Tyler Lambert, Capital Tyler Lambert, Drawing Jayla Yost, Capital Jayla Yost, Drawing Professional Fees Salary Expense Depreciation Expense-Building Property Tax Expense Heating and Lighting Expense Supplies Expense Depreciation Expense-Office Equipment Miscellaneous Expense 67,200 63,600 21,700 27,900 5,100 135,000 50,000 88,000 60,000 395,300 154,500 15,700 12,000 8,500 6,000 5,000 3,600 740,200 740,200