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 2019. 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 2019 financial statements for the partnership are presented below 

Required: 

Complete J&S Barbers’ Form 1065 and Emily and James’ Schedule K-1s. 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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JES Barbers Income Statement for the Year Ending December 31, 2019 $372,300 Gross income from operations Deductions: Salaries to employees Payroll taxes Supplies Rent 94,600 14,500 9,000 41,000 5,100 2,000 Depreciation Short-term capital loss Charitable contributions 500 $205,600 $ 80,000 Net income Partners' withdrawals (each partner) JES Barbers Balance Sheet as of December 31, 2019 Assets: $100,450 10,000 Cash Accounts receivable Equipment Accum. depreciation $32,000 (5,100) 26,900 $137,350 Liabilities and Capital: Accounts payable Notes payable Partners' capital ($20,000 contributed by each partner) $ 29,750 22,000 85,600 $137,350