Question

Price, Waterhouse, and Coopers complete their first year of business as a partnership. The partners offer auditing, tax, and advisory services. Use the Tableau Dashboard to determine allocation of income.

A.Determine each partner’s share of income assuming the partners agree to share income by giving a $27,000 per year salary allowance to Price, a $50,000 per year salary allowance to Waterhouse, a $46,000 per year salary allowance to Coopers, a 15% interest on their initial capital investments, and the remaining balance shared equally.
B. Prepare a statement of partners’ equity for the year ended December 31.

Owner Initial Investments:

Price - $20,000 , Waterhouse - $30,000 , Coopers - $50,000

Revenues:

Advisory Services Revenue (Red) - $130,000 , Auditing Revenue (Yellow) - $165,000 , Tax Services Revenue (Blue) - $100,000

Expenses:

Salaries Expense - $60,000 , Supplies Expense - $31,000 , Advertising Expense - $55,000 , Insurance Expense - $32,000 , Rent Expense - $34,000

Owner Withdrawals:

Price - $2,500 , Waterhouse - $3,000 , Coopers - $2,000

Answer 1

the year ended Amount Income Statement for Particulars Revenue : Advisory Service Revenue Auditing Revenue Tax Revenue 8130000 $1,65,000 4 10.0000 |$395000 less, Eefenses: Salaries Expense Supplies expense Advertising expense Dusurance expense Reut expense $(60,000) (31000) (55,000 (32000) (34000) $ 183,000 Net Income Noter Bracket c ) Represents minus sign - Allocation of Partnership Income Particulars Price warehouse coopers total Net Income (hoss) $183,000 Salary Allowance 8.2 7000 850000 $46000 (123000 Balance of income $60,000 Interest Allowance $3.00 $450 $7500 (15000) Balance of Income 1$45000 Balance allocated equally $15000 $15000 $ 15000 (45000 Balance of fueous Closs I NEL Share of each Partner' $45000 $69.500 $68500

PRECE , WATER House and LOOPERS Statement of Partner's fequitus F for the year Ended, pec 31 Particulars 1 Price WATER House Coopers Total Partnership Investments $20,000 $30,000 850000 $1,0,000 Quitiul Add! Net Encome.. . salary Interest Balance Profit $27000 $50000 $46000 $123000 3000 4500 7500 $ 15000 5ooo 115000 15000 845000 65000 99500 $118500 $283,000 89500) ($3000) / (82000) (7500) less! Drawing withed souvel a Balare at the year end $62,500.8965004116500 1275500