Below is the adjusted trial balance for the partnership of J, K and L, group of CPA’s in the practice of their profession. JKL Partnership Adjusted Trial Balance Year Ended December 31, 2019 Cash 95,980 Accounts Receivable 167,850 Allowance for Doubtful Accounts 10,240 Supplies 24,120 Prepaid Insurance 18,090 Furniture and Equipment 788,650 Accumulated Depreciation – F&E 70,600 Accounts Payable 19,460 Salaries Payable 11,150 Utilities Payable 12,700 J. Capital 350,000 K. Capital 350,000 L. Capital 200,000 J. Drawing 52,000 K. Drawing 50,000 L. Drawing 30,000 Professional Service Fees 736,700 Salaries Expense 353,470 Rent Expense 98,000 Utilities Expense 76,140 Miscellaneous Expense 8,270 Interest Income 7,440 Interest Expense 5,720 Total 1,768,290 1,768,290 Additional Information: The profit and loss agreement of the partners is as follows: Interest of 10% is to be paid on their beginning capital balances; The partners are entitled to salary allowances of 25,000, 20,000 and 20,000, respectively; Remaining balance is to be divided 4:3:3 Required: Prepare the following financial statements: Statement of Income, with a schedule showing distribution of profits Statement of Changes in Partner’s Equity Statement of Financial Position

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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Below is the adjusted trial balance for the partnership of J, K and L, group of CPA’s in the practice of their profession.

JKL Partnership
Adjusted Trial Balance
Year Ended December 31, 2019

Cash	95,980
Accounts Receivable	167,850
Allowance for Doubtful Accounts		10,240
Supplies	24,120
Prepaid Insurance	18,090
Furniture and Equipment	788,650
Accumulated Depreciation – F&E		70,600
Accounts Payable		19,460
Salaries Payable		11,150
Utilities Payable		12,700
J. Capital		350,000
K. Capital		350,000
L. Capital		200,000
J. Drawing	52,000
K. Drawing	50,000
L. Drawing	30,000
Professional Service Fees		736,700
Salaries Expense	353,470
Rent Expense	98,000
Utilities Expense	76,140
Miscellaneous Expense	8,270
Interest Income		7,440
Interest Expense	5,720
Total	1,768,290	1,768,290

Additional Information:

The profit and loss agreement of the partners is as follows:

Interest of 10% is to be paid on their beginning capital balances;
The partners are entitled to salary allowances of 25,000, 20,000 and 20,000, respectively;

Remaining balance is to be divided 4:3:3

Required:

Prepare the following financial statements:

Statement of Income, with a schedule showing distribution of profits
Statement of Changes in Partner’s Equity
Statement of Financial Position

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