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, 20Y3:

Lambert and Yost

ADJUSTED TRIAL BALANCE

December 31, 20Y3

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	33,600.00
2	Accounts Receivable	47,500.00
3	Supplies	2,200.00
4	Land	119,500.00
5	Building	157,200.00
6	Accumulated Depreciation-Building		67,400.00
7	Office Equipment	63,800.00
8	Accumulated Depreciation-Office Equipment		21,700.00
9	Accounts Payable		27,500.00
10	Salaries Payable		5,100.00
11	Tyler Lambert, Capital		135,400.00
12	Tyler Lambert, Drawing	49,500.00
13	Jayla Yost, Capital		88,100.00
14	Jayla Yost, Drawing	59,900.00
15	Professional Fees		394,500.00
16	Salary Expense	155,000.00
17	Depreciation Expense-Building	15,600.00
18	Property Tax Expense	12,300.00
19	Heating and Lighting Expense	8,400.00
20	Supplies Expense	5,800.00
21	Depreciation Expense-Office Equipment	5,300.00
22	Miscellaneous Expense	4,100.00
23	Totals	739,700.00	739,700.00

The balance in Yost’s capital account includes an additional investment of $10,300 made on April 10, 20Y3.

	Required:
1.	Prepare an income statement for 20Y3. Create a separate statement indicating the division of net income to the partners. The partnership agreement provides for salary allowances of $44,500 to Lambert and $54,700 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 20Y3.*
3.	Prepare a balance sheet as of the end of 20Y3.* * Refer to the Accounts, 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