Homework Help is Here – Start Your Trial Now!
Business
Accounting
Works. Adjusted trial balance information for the year ended Decer Account Accounts payable Accumulated depreciation Brian Adams, capital** Brian Adams, withdrawals Cash Equipment Expenses Balance* $ 11,100 Keith Williams, c 91,000 Keith Williams, w 38,000 Note payable, due 76,000 Office supplies 227,200 Revenues 332,000 Utilities payable 118,000 Assume all account balances are normal.

Works. Adjusted trial balance information for the year ended Decer Account Accounts payable Accumulated depreciation Brian Adams, capital** Brian Adams, withdrawals Cash Equipment Expenses Balance* $ 11,100 Keith Williams, c 91,000 Keith Williams, w 38,000 Note payable, due 76,000 Office supplies 227,200 Revenues 332,000 Utilities payable 118,000 Assume all account balances are normal.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
i need the answer quickly
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 Accounts payable Accumulated depreciation Brian Adams, capital** Brian Adams, withdrawals Cash Equipment Expenses Balance* Account $ 11,100 Keith Williams, capital** 91,000 Keith Williams, withdrawals 38,000 76,000 Balance* $ 44,300 66,000 Note payable, due May 2025*** Office supplies 152,000 227,200 332,000 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 Accounts payable Accumulated depreciation Brian Adams, capital** Brian Adams, withdrawals Cash Equipment Expenses Balance* Account $ 11,100 Keith Williams, capital** 91,000 Keith Williams, withdrawals 38,000 76,000 Balance* $ 44,300 66,000 Note payable, due May 2025*** Office supplies 152,000 227,200 332,000 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
Expert Solution
steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Estates and Trusts
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS