Prepare the following: (using the provided worksheet)

a. Statement of Changes in Partners' Capital

b. Income Statement

c. Statement of Financial Position

d. Closing Entries

hero.com/qa/wait/28984346/?question_id=28984346 Solution: J share =5/8 K share is 3/8 Adjusting Entries 1. Merchandise Inventory Dec, 31 300,000 Revenue and expense summary 300,000 2. Depreciation - Building 50,000 Accumulated Depreciation - Building 50,000 3. Bad debts 30,000 Allowance for bad debts 30,000 4. Salaries and Wages 40,000 Salaries Payable 40,000 5. Prepaid Advertisement 25,000 Cash 25,000 Explanation: Solution s this answer helpful? He OJ and K Merchandising Work Shee For the period ended December 31, 200A Trail Balance Adjustments Adjusted TB Income Statement J, Capital K. Capital Statement of FP Accounts Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 2,26,000 -25,000 2,01,00 2,01,000 Account Receivables 1,20,000 1,20,000 1,20,000 Allowance for bad debts 20,000 30,000 50,00 50,000 Notes Receivables 30,000 30,000 30,000 Mechandised Inventory Jan1 1,50,000 1,50,000 1,50,000 Land 6,00,000 6,00,000 6,00,000 Building 5,00,000 5,00,000 5,00,000 Accumulated Depreciation - Building 50,000 50,000 1,00,000 1,00,000 Accounts Payable 62,00 62,000 62,00 Notes Payable 70,000 70,00 70,000 J, Capital 6,50,000 6,50,000 6,50,000 J, Drawings 20,000 20,000 20,000 K, Capital 5,00,000 5,00,000 5,00,000 K, Drawings 10,000 10.000 10,000 Sales 14,50,000 14,50,000 14,50,000 Sales Returns and allowances 32,000 32,000 32,000 Purchases 7,00,000 7,00,000 7,00,000 Freight-in 45,000 45,000 45,000 Purchase return and allowances 12,000 12,00 12,000 Salaries and wages 80,000 40,000 1,20,000 1,20,000 Advertising Expenses 65,000 65,00 65,000 Rent Expenses 78,000 78,000 78,000 Freight-out 20,000 20,000 20,000 Sales Discount 25,000 25,000 25,000 Interest Expenses 5,000 5,000 5,000 Miscellaneous Expenses 1,25,000 1,25,000 1,25,000 Purchase discount 14,000 14,000 14,000 Interest Income 3,000 3,00 3,000 Mechandised Inventory Dec 31 3,00,000 3,00,000 3,00,000 3,00,000 Depreciation-Building 50,000 50,000 50,000 Salaries payable 40,000 40,00 40,000 Prepaid advertisement 25,000 25,000 25,000 Bad Debt Expenses 30,000 30,000 30,000 Total 28,31,000 28,31,000 4,20,000 1,20,000 32,51,000 29,51,000 14,45,000 17,79,000 20,000 6,50,000 10,000 5,00,000 17,76,000 3,22,000 Net Profit Distributed as follows : Salary allowance to K, 60000 per annum 60,00 6% Interest on Beginning capital 67,200 37,800 29.40 Balance J:k = 5:3 2,06,800 1,29,250 77,550 17,19,000 17,79,000 20,000 8,17,050 10,000 6,66,950 17,76,000 3,22,000 Net Capital 7,97,050 6,56,950 14,54,000 17,19,000 17,79,000 8,17,050 8,17,050 6,66,950 6,66,950 17,76,000 17,76,000