Kimble, Sykes, and Gerard open an accounting practice on January 1, 2022, in Chicago, Illinois, to...

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Kimble, Sykes, and Gerard open an accounting practice on January 1, 2022, in Chicago, Illinois, to be operated as a partnership. Kimble and Sykes will serve as the senior partners because of their years of experience. To establish the business, Kimble, Sykes, and Gerard contribute cash and other properties valued at $228,000, $190,000, and $102,000, respectively. An articles of partnership agreement is drawn up stipulating the following: Personal drawings are allowed annually up to an amount equal to 10 percent of the partner's beginning capital balance for the year. Profits and losses are allocated according to the following plan: 1. Each partner receives an annual salary allowance of $55 per billable hours worked. 2. Interest is credited to the partners' capital accounts at the rate of 12 percent of the beginning capital balance for the year. 3. Kimble and Sykes are eligible for an annual bonus of 10 percent of net income after subtracting the bonus, salary allowance, anc interest. The agreement also states that there will be no bonus if there is a net loss or if salary and interest result in a negative remainder of net income to be distributed. 4. Any remaining partnership profit or loss is to be divided evenly among all partners. On January 1, 2023, the partners admit Nichols to the partnership. Nichols contributes cash directly to the business in an amount equa to a 25 percent interest in the book value of the partnership property subsequent to this contribution. The partnership profit and loss sharing agreement is not altered upon Nichols's entrance into the firm; the general provisions continue to be applicable. The billable hours for the partners during the first three years of operation follow: Kimble Sykes Gerard Nichols 2022 2,180 1,920 1,780 0 2023 1,800 2024 1,880 1,500 1,620 1,380 1,310 1,560 1,550 The partnership reports net income (loss) for 2022 through 2024 as follows: Req A 2022 Req A 2023 Req A 2024 Req B Prepare schedules that allocate for 2023 net income to the partners. Note: Loss amounts should be indicated with a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar amounts. Net loss Salary allowance Interest Bonus Remainder to allocate Total allocation Net Income Allocation-2023 Kimble Sykes Gerard Nichols Totals Req A 2022 Req A 2023 Req A 2024 Req B Prepare in appropriate form a statement of partners' capital for the year ending December 31, 2024. Note: Amounts to be deducted should be indicated with minus sign. Do not round intermediate calculations. Round your answers to nearest dollar amounts. KIMBLE, SYKES, GERARD, and NICHOLS Statement of Partners' Capital 0 For the Year Ending December 31, 2024 Kimble Sykes Gerard Nichols Totals 0 Beginning balances $ Profit allocation 0 0 0 $ Drawings 0 0 0 Ending Balances $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 < Req A 2024 Req B > < Req A 2022 Req A 2024 > 2022 2023 2024 $ 294,000 (13,600) 489,000 Each partner withdraws the maximum allowable amount each year. Required: a. Prepare schedules that allocate each year's net income to the partners. b. Prepare in appropriate form a statement of partners' capital for the year ending December 31, 2024. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Req A 2022 Req A 2023 Req A 2024 Req B Prepare schedules that allocate for 2024 net income to the partners. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amounts. Req A 2022 Req A 2023 Req A 2024 Req B Prepare schedules that allocate for 2022 net income to the partners. Note: Loss amounts should be indicated with minus sign. Net Income Allocation-2022 Kimble Sykes Gerard Totals Net income Salary allowance $ Interest Bonus $ 294,000 Net income Salary allowance Interest Bonus 119,900 $ 105,600 $ 27,360 0 22,800 0 97,900 12,240 (323,400) Remaining net income (62,400) 0 0 Remainder to allocate (91,800) Total allocation (30,600) (30,600) (30,600) 91,800 Total allocation $ 116,660 $ 97,800 $ 79,540 $ 0 < Req A 2022 Req A 2023 > Net Income Allocation-2024 Kimble Sykes Gerard Nichols Totals $ 0 $ < Req A 2023 0 0 0 $ 0 0 0 $ 0 $ 0 $ 0 Req B > Kimble, Sykes, and Gerard open an accounting practice on January 1, 2022, in Chicago, Illinois, to be operated as a partnership. Kimble and Sykes will serve as the senior partners because of their years of experience. To establish the business, Kimble, Sykes, and Gerard contribute cash and other properties valued at $228,000, $190,000, and $102,000, respectively. An articles of partnership agreement is drawn up stipulating the following: Personal drawings are allowed annually up to an amount equal to 10 percent of the partner's beginning capital balance for the year. Profits and losses are allocated according to the following plan: 1. Each partner receives an annual salary allowance of $55 per billable hours worked. 2. Interest is credited to the partners' capital accounts at the rate of 12 percent of the beginning capital balance for the year. 3. Kimble and Sykes are eligible for an annual bonus of 10 percent of net income after subtracting the bonus, salary allowance, anc interest. The agreement also states that there will be no bonus if there is a net loss or if salary and interest result in a negative remainder of net income to be distributed. 4. Any remaining partnership profit or loss is to be divided evenly among all partners. On January 1, 2023, the partners admit Nichols to the partnership. Nichols contributes cash directly to the business in an amount equa to a 25 percent interest in the book value of the partnership property subsequent to this contribution. The partnership profit and loss sharing agreement is not altered upon Nichols's entrance into the firm; the general provisions continue to be applicable. The billable hours for the partners during the first three years of operation follow: Kimble Sykes Gerard Nichols 2022 2,180 1,920 1,780 0 2023 1,800 2024 1,880 1,500 1,620 1,380 1,310 1,560 1,550 The partnership reports net income (loss) for 2022 through 2024 as follows: Req A 2022 Req A 2023 Req A 2024 Req B Prepare schedules that allocate for 2023 net income to the partners. Note: Loss amounts should be indicated with a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar amounts. Net loss Salary allowance Interest Bonus Remainder to allocate Total allocation Net Income Allocation-2023 Kimble Sykes Gerard Nichols Totals Req A 2022 Req A 2023 Req A 2024 Req B Prepare in appropriate form a statement of partners' capital for the year ending December 31, 2024. Note: Amounts to be deducted should be indicated with minus sign. Do not round intermediate calculations. Round your answers to nearest dollar amounts. KIMBLE, SYKES, GERARD, and NICHOLS Statement of Partners' Capital 0 For the Year Ending December 31, 2024 Kimble Sykes Gerard Nichols Totals 0 Beginning balances $ Profit allocation 0 0 0 $ Drawings 0 0 0 Ending Balances $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 < Req A 2024 Req B > < Req A 2022 Req A 2024 > 2022 2023 2024 $ 294,000 (13,600) 489,000 Each partner withdraws the maximum allowable amount each year. Required: a. Prepare schedules that allocate each year's net income to the partners. b. Prepare in appropriate form a statement of partners' capital for the year ending December 31, 2024. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Req A 2022 Req A 2023 Req A 2024 Req B Prepare schedules that allocate for 2024 net income to the partners. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amounts. Req A 2022 Req A 2023 Req A 2024 Req B Prepare schedules that allocate for 2022 net income to the partners. Note: Loss amounts should be indicated with minus sign. Net Income Allocation-2022 Kimble Sykes Gerard Totals Net income Salary allowance $ Interest Bonus $ 294,000 Net income Salary allowance Interest Bonus 119,900 $ 105,600 $ 27,360 0 22,800 0 97,900 12,240 (323,400) Remaining net income (62,400) 0 0 Remainder to allocate (91,800) Total allocation (30,600) (30,600) (30,600) 91,800 Total allocation $ 116,660 $ 97,800 $ 79,540 $ 0 < Req A 2022 Req A 2023 > Net Income Allocation-2024 Kimble Sykes Gerard Nichols Totals $ 0 $ < Req A 2023 0 0 0 $ 0 0 0 $ 0 $ 0 $ 0 Req B >