Question

The ledger of Tyler Lambert and Jayla Yost, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 2016: Lambert and Yost ADJUSTED TRIAL BALANCE December 31, 2016 ACCOUNT TITLE DEBIT CREDIT 1 Cash 34,300.00 2 Accounts Receivable 47,600.00 3 Supplies 2,200.00 4 Land 120,400.00 5 Building 158,000.00 6 Accumulated Depreciation-Building 67,100.00 7 Office Equipment 63,800.00 8 Accumulated Depreciation-Office Equipment 21,500.00 9 Accounts Payable 28,400.00 10 Salaries Payable 4,600.00 11 Tyler Lambert, Capital 134,800.00 12 Tyler Lambert, Drawing 49,500.00 13 Jayla Yost, Capital 87,800.00 14 Jayla Yost, Drawing 59,800.00 15 Income Summary 16 Professional Fees 394,800.00 17 Salary Expense 154,300.00 18 Depreciation Expense-Building 15,200.00 19 Property Tax Expense 12,500.00 20 Heating and Lighting Expense 8,000.00 21 Supplies Expense 5,500.00 22 Depreciation Expense-Office Equipment 4,500.00 23 Miscellaneous Expense 3,400.00 24 Totals 739,000.00 739,000.00 The balance in Yost’s capital account includes an additional investment of $10,200 made on April 10, 2016. Required: 1. Prepare an income statement for 2016. Create a separate statement indicating the division of net income to the partners. The partnership agreement provides for salary allowances of $44,700 to Lambert and $55,100 to Yost, allowances of 10% on each partner’s capital balance at the beginning of the fiscal year, and equal division of the remaining net income or net loss.* 2. Prepare a statement of partnership equity for 2016.* 3. Prepare a balance sheet as of the end of 2016.* * Refer to the information given and the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If a net loss is incurred or there is a decrease in partner’s equity, enter that amount as a negative number using a minus sign.

Answer 1