Question

Following are the adjusted account balances of Martin and Jackson LLP as of December 31, the end of the fiscal year.
Accounts Payable ................. $ 69,812
Accounts Receivable ................ 60,143
Accumulated Depreciation, Equipment ........ 47,756
Allowance for Doubtful Accounts .......... 2,192
Cash 64,617 Equipment .............. 80,710
Freight In ..................... 27,380
General Expenses (control) .............. 14,495
Interest Expense ................. 2,000
J. V. Martin, Capital ................ 65,280
J. V. Martin, Drawing ................ 30,192
Merchandise Inventory, December 31 ......... 128,760
Notes Payable (current) .............. 16,320
Prepaid Insurance ................ $ 704
Purchases ................... 522,043
Purchases Discounts ............... 4,516
Purchases Returns and Allowances ......... 26,204
Sales ...................... 761,332
Sales Returns and Allowances ........... 36,590
S. C. Jackson, Capital ............... 53,040
S. C. Jackson, Drawing .............. 29,376
Selling Expenses (control) .............. 36,273
The merchandise inventory at the beginning of the year was $ 141,929, and there were no changes in the partners’ Capital accounts during the year. The partnership agreement provides for salary allowances of $ 61,900 for Martin and $ 59,350 for Jackson. The agreement also stipulates an interest allowance of 10 percent on invested capital at the beginning of the year. The remainder of the net income is to be divided equally.

Required
1. Prepare an income statement for the year.
2. Prepare a statement of partners’ equity for the year.
3. Prepare a classified balance sheet for the partnership at the end of the year.



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  • CreatedOctober 21, 2014
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