Answer:
Tyler Lambert and Jayla Yost, LLC.
1. Income Statement for the year ended December 31, 2016
15 Professional Fees 394,500
16 Salary Expense 155,000
17 Depreciation Expense-Building 15,600
18 Property Tax Expense 12,300
19 Heating and Lighting Expense 8,400
20 Supplies Expense 5,800
21 Depreciation Exp.-Office Equipment 5,300
22 Miscellaneous Expense 4,100 206,500
Net income 188,000
Division of net income to the partners:
Lambert Yost Total
Salary allowance $45,100 $54,500 $99,600
Interest on capital 13,540 8,810 22,350
Share of the remainder 33,025 33,025 66,050
Total $91,665 $96,335 $188,000
2. Statement of Partnership Equity for the year 2016:
Lambert Yost Total
Balance $135,400 $88,100 $223,500
Drawings (49,500) (59,900) (109,400)
Share of profit 91,665 96,335 188,000
Capital balance $177,565 $124,535 $302,100
3. Balance Sheet as of December 31, 2016
1 Cash 33,600
2 Accounts Receivable 47,500
3 Supplies 2,200 $83,300
Long-term assets:
4 Land 119,500
5 Building 157,200
6 Accumulated Depreciation-Building (67,400)
7 Office Equipment 63,800
8 Accumulated Depreciation-Equipment (21,700) $251,400
Total assets $334,700
Liabilities and Partners' Equity:
9 Accounts Payable 27,500
10 Salaries Payable 5,100
Total liabilities $32,600
Partners' Equity:
11 Tyler Lambert, Capital 177,565
12 Jayla Yost, Capital 124,535
Total equity $302,100
Total liabilities and equity $334,700
Explanation:
a) Data and Calculations:
Lambert and Yost
ADJUSTED TRIAL BALANCE
December 31, 20Y3
ACCOUNT TITLE DEBIT CREDIT
1 Cash 33,600
2 Accounts Receivable 47,500
3 Supplies 2,200
4 Land 119,500
5 Building 157,200
6 Accumulated Depreciation-Building 67,400
7 Office Equipment 63,800
8 Accumulated Depreciation-Office Equipment 21,700
9 Accounts Payable 27,500
10 Salaries Payable 5,100
11 Tyler Lambert, Capital 135,400
12 Tyler Lambert, Drawing 49,500
13 Jayla Yost, Capital 88,100
14 Jayla Yost, Drawing 59,900
15 Professional Fees 394,500
16 Salary Expense 155,000
17 Depreciation Expense-Building 15,600
18 Property Tax Expense 12,300
19 Heating and Lighting Expense 8,400
20 Supplies Expense 5,800
21 Depreciation Exp.-Office Equipment 5,300
22 Miscellaneous Expense 4,100
23 Totals 739,700 739,700
