Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. Keith Williams and Brian Adams were students when they formed a partnershipseveral years ago for a part-time business called Music Works. Adjusted trialbalance information for the year ended December 31, 2023, appears below.Account Balance* Account Balance* Accounts payable $ 9,500 Keith Williams,capital** $ 28,300 Accumulated depreciation 75,000 Keith Williams, withdrawals50,000 Brian Adams, capital** 22,000 Note payable, due May 2025*** 120,000Brian Adams, withdrawals 60,000 Office supplies 16,000 Cash 208,000Revenues 480,000 Equipment 300,000 Utilities payable 1,200 Expenses102,000 *Assume all account balances are normal. **The partners made noinvestments during the year. ***$40,000 of the note payable is due in May 2024.Required: 1. Prepare calculations that show how the profit should be allocated tothe partners assuming the partnership agreement states that profit/(losses) areto be shared by allowing a $90,000 per year salary allowance to Williams, a $150,000 per year salary allowance to Adams, and the remainder on a 3:2 ratio. (Leave no cell blank. Enter "0" when the answer is zero.) 2. Prepare the journalentry to close the Income Summary account to the partners' capital accounts. 3.Prepare a statement of changes in equity and a classified balance sheet.

1. Profit Allocation Calculation:The profit allocation is based on the agreed salary allowances and…

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 $90,000 per year salary allowance to Williams, a $ 150,000 per year salary allowance to Adams, and the remainder on a 3:2 ratio. ( Leave no cell blank. Enter "0" when the answer is zero.) 2. Prepare the journal entry to close the Income Summary account to the partners' capital accounts. 3. Prepare a statement of changes in equity and a classified balance sheet.

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 $90,000 per year salary allowance to Williams, a $ 150,000 per year salary allowance to Adams, and the remainder on a 3:2 ratio. ( Leave no cell blank. Enter "0" when the answer is zero.) 2. Prepare the journal entry to close the Income Summary account to the partners' capital accounts. 3. Prepare a statement of changes in equity and a classified balance sheet.

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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