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Account ccounts payable cumulated depreciation rian Adams, capital** rian Adams, withdrawals ash quipment xpenses Balance* $ 11,100 91,000 38,000 76,000 227,200 332,000 118,000 Account Keith Williams, capital** Keith Williams, withdrawals Note payable, due May 2025*** Office supplies Revenues Utilities payable Balance $ 44,300 66,000 152,000 32,000 512,000 2,800

Account ccounts payable cumulated depreciation rian Adams, capital** rian Adams, withdrawals ash quipment xpenses Balance* $ 11,100 91,000 38,000 76,000 227,200 332,000 118,000 Account Keith Williams, capital** Keith Williams, withdrawals Note payable, due May 2025*** Office supplies Revenues Utilities payable Balance $ 44,300 66,000 152,000 32,000 512,000 2,800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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, 2023, appears below. Account Account Accounts payable Accumulated depreciation Brian Adams, capital** Brian Adams, withdrawals Cash Equipment Expenses Balance* $ 11,100 Keith Williams, capital** Balance* $ 44,300 91,000 Keith Williams, withdrawals 66,000 38,000 Note payable, due May 2025*** 152,000 76,000 227,200 332,000 Office supplies Revenues Utilities payable 32,000 512,000 2,800 118,000 Assume all account balances are normal. The partners made no investments during the year. ***$56,000 of the note payable is due in May 2024. Required: 1. Prepare calculations that show how the profit should be allocated to the partners assuming the partnership agreement states that profit/(losses) are to be shared by allowing a $106,000 per year salary allowance to Williams, a $166,000 per year salary allowance to Adams, and the remainder on a 3:2 ratio. (Leave no cell blank. Enter "O" when the answer is zero.) Profit Salary allowance Balance of profit to be allocated Balance allocated on a 3:2 ratio Balance of profit Shares of the partners Williams Adams Total 0 $ 0 0
Transcribed Image Text: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, 2023, appears below. Account Account Accounts payable Accumulated depreciation Brian Adams, capital** Brian Adams, withdrawals Cash Equipment Expenses Balance* $ 11,100 Keith Williams, capital** Balance* $ 44,300 91,000 Keith Williams, withdrawals 66,000 38,000 Note payable, due May 2025*** 152,000 76,000 227,200 332,000 Office supplies Revenues Utilities payable 32,000 512,000 2,800 118,000 Assume all account balances are normal. The partners made no investments during the year. ***$56,000 of the note payable is due in May 2024. Required: 1. Prepare calculations that show how the profit should be allocated to the partners assuming the partnership agreement states that profit/(losses) are to be shared by allowing a $106,000 per year salary allowance to Williams, a $166,000 per year salary allowance to Adams, and the remainder on a 3:2 ratio. (Leave no cell blank. Enter "O" when the answer is zero.) Profit Salary allowance Balance of profit to be allocated Balance allocated on a 3:2 ratio Balance of profit Shares of the partners Williams Adams Total 0 $ 0 0
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