2 Keith Williams and Brian Adams were students when they formed a partnership several years ago for a part- time business called Music Works. Adjusted trial balance information for the year ended December 31, 2020, appears below. Account Balance* Balance* 8 04:03:36 Accounts payable $ 10,000 $ 33,300 Accumulated depreciation Account Keith Williams, capital** Keith Williams, withdrawals Note payable, due May 2022*** 80,000 55,000 Brian Adams, capital** 27,000 130,000 65,000 Office supplies 21,000 Brian Adams, withdrawals Cash Equipment Expenses 214,000 Revenues 310,000 Utilities payable 107,000 490,000 1,700 *Assume all account balances are normal. **The partners made no investments during the year. ***$45,000 of the note payable is due in May 2021. 3. Prepare a statement of changes in equity and a classified balance sheet. MUSIC WORKS Statement of Changes in Equity For Year Ended December 31, 2020 Williams Adams Total $ 60,300 Capital, March 31, 2020 Add: Profit Total $ 33,300 $ 174,800 208,100 $ (55,000) 153,100 $ 27,000 $ 208,200 235,200 $ (65,000) 170,200 $ 383,000 443,300 (120,000) 323,300 Less: Partners' withdrawals $ MUSIC WORKS Balance Sheet December 31, 2020 Assets Current assets: Cash Office supplies Total current assets 0 Property, plant and equipment: Equipment Less: Accumulated depreciation Total assets $ 0 Liabilities Current liabilities: Accounts payable Note payable, due May 2022 Utilities payable Note payable, due May 2022 Total current liabilities $ 0 Non-current liabilities: Keith Williams, capital Brian Adams, capital Total liabilities $ 0 Equity Keith Williams, capital Total equity 0 Total liabilities and equity $ 0