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Financial statements for partnership The ledger of Tyler Lambert and Jay la Yost, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20 Y3: Lambert and Yost Trial Balance December 31,20Y3 Debit Balances Credit Balances Cash 34,000 Accounts Receivable 47,800 Supplies 2,000 Land 120,000 Building 157,500 Accumulated Depreciation—Building 67,200 Office Equipment 63,600 Accumulated Depreciation—Office Equipment 21,700 Accounts Payable 27,900 Salaries Payable 5,100 Tyler Lambert. Capital 135,000 Tyler Lambert. Drawing 50,000 Jayla Yost. Capital 88,000 Jayla Yost, Drawing 60,000 Professional Fees 395,300 Salary Expense 1 54,500 Depreciation Expense—Building 15,700 Property Tax Expense 12,000 Heating and Lighting Expense 8,500 Supplies Expense 6,000 Depreciation Expense—Office Equipment 5,000 Miscellaneous Expense 3,600 740,200 740,200 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 r 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

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 12, Problem 12.3APR
Textbook Problem

Financial statements for partnership

The ledger of Tyler Lambert and Jay la Yost, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20 Y3:

Lambert and Yost

Trial Balance

December 31,20Y3

  Debit Balances Credit Balances
Cash 34,000  
Accounts Receivable 47,800  
Supplies 2,000  
Land 120,000  
Building 157,500  
Accumulated Depreciation—Building   67,200
Office Equipment 63,600  
Accumulated Depreciation—Office Equipment   21,700
Accounts Payable   27,900
Salaries Payable   5,100
Tyler Lambert. Capital   135,000
Tyler Lambert. Drawing 50,000  
Jayla Yost. Capital   88,000
Jayla Yost, Drawing 60,000  
Professional Fees   395,300
Salary Expense 1 54,500  
Depreciation Expense—Building 15,700  
Property Tax Expense 12,000  
Heating and Lighting Expense 8,500  
Supplies Expense 6,000  
Depreciation Expense—Office Equipment 5,000  
Miscellaneous Expense 3,600  
  740,200 740,200

The balance in Yost's capital account includes an additional investment of $ 10,000 made on April 10, 20Y3.

Instructions

  1. 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 $54r700 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. 2. Prepare a statement of partnership equity for 20Y3.
  3. 3. Prepare a balance sheet as of the end of 20Y3

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Chapter 12 Solutions

Accounting
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