The ledger of Ken White and Alex Weekley, lawyers, contains the following accounts and balances after adjustments have been recorded on December 31, 2015:

The balance in Weekley's capital account includes an additional investment of $20,000 made on April 5, 2015.
Instructions
1. Prepare an income statement for the current fiscal year, indicating the division of net income as shown on page 570. The articles of partnership provide for salary allowances of $60,000 to White and $75,000 to Weekley, allowances of 5% 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 changes in partnership equity for 2015.
3. Prepare a balance sheet as at the end of 2015.

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Credit Balances Debit Balances Cash 24.200 Accounts Receivable Supplies Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Ken White, Capital Ken White, Withdrawals Alex Weekley, Capital Alex Weekley, Withdrawals Professional Fees 41,300 6,700 500,000 240,600 3,400 5,200 125.000 50,000 160,000 60,000 562, 200 Salaries Expense Depreciation Expense Adminstrative Expenses 312,300 81,700 20.200 1.096,400 1.096,400