P$12\mathrm{.}4$A $($LO $3,4)$ AP Veda Storey and Gordon Rogers have a partnership agreement with the following provisions for sharing profit or loss:

A salary allowance of $$30,900$ to Storey and $$39,700$ to Rogers

An interest allowance of $5\%$ on capital balances at the beginning of the year

The remainder to be divided between Storey and Rogers on a $2$:$3$ basis

The capital balances on January $1,2024,$ for Storey and Rogers were $$82,000$ and $$101,000,$ respectively. For the year ended December $31,2024,$ the Storey Rogers

Partnership had sales of $$340,000$; cost of goods sold of $$250,000$; operating expenses of $$130,000$; V$.$ Storey drawings of $$24,000$; and G$.$ Rogers drawings of

$$28,80$o$.$

Instructions

a$.$ Prepare an income statement for Storey Rogers Partnership for the year.

b$.$ Prepare a schedule to show how the profit or loss will be allocated to the two partners.

c$.$ Prepare a statement of partners' equity for the year.

d$.$ Prepare closing entries at December $31.$