The ledger of Dan Yamada and Courtney Forte, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 2010:The balance in Forte’s capital account includes an additional investment of $10,000 made on August 10, 2010. Instructions1. Prepare an income statement for 2010, indicating the division of net income. The articles of partnership provide for salary allowances of $40,000 to Yamada and $50,000 to Forte, 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 partners’ equity for 2010.3. Prepare a balance sheet as of the end of2010.
View Solution:
The ledger of Dan Yamada and Courtney Forte attorneys at law c



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *