Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnership’s first year of operation is 2014. Emily and James divide income and expenses equally. The partnership name is J&S Barbers, it is located at 1023 Broadway, New York, NY 10004, and its Federal ID number is 95-6767676. The 2014 financial statements for the partnership are presented below.

Emily lives at 456 E. 70th Street, New York, NY 10006, and James lives at 436 E. 63^rd Street, New York, NY 10012.

Required:

Complete J&S Barbers’ Form 1065 and Emily and James’ Schedule K-1s on Pages 10-29 to 10 38. Do not fill in Schedule D for the capital loss, Form 4562 for depreciation, or Schedule B-1 related to ownership of the partnership. Make realistic assumptions about any missing data. 

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JS Barbers Income Statement for the Year Ending December 31, 2014 Gross income from operations Deductions $371,600 Salaries to employees Payroll taxes Supplies Rent Depreciation Short-term capital loss Charitable contributions 94,000 10,000 9,000 45,000 5,100 2,000 500 $206,000 S 80,000 Net income Partners' withdrawals (each partmer) S Barbers Balance Sheet as of December 31, 2014 Assets: Cash Accounts receivable Equipment Accum. depreciation $100,850 10,000 $32,000 (5,100) 26,900 $137,750 Liabilities and Capital Accounts payable Notes payable Partmers' capital (S20,000 S 29,750 22,000 contributed by each partner 86,000 $137,750