Question

Current Attempt in Progress Below is an alphabetical listing of the accounts in the general ledger of the Kant-Adder accounting firm at the 2021. Adjusting entries for the year have been posted and included in these balances. Accounts payable Accounts receivable Accumulated depreciation-equipment Cash Depreciation expense Equipment I. Kant, capital I. Kant, drawings Interest expense $12,500 61,000 12,000 14,000 8,000 42,000 30,000 90,000 5,000 Notes payable Rent expense Salaries expense Salaries payable Service revenue Supplies Supplies expense U. Adder, capital U. Adder, drawings Unearned revenue $50,000 36,000 80,000 8,000 255,000 1,500 5,000 30,000 60,000 5,000 Additional information: 1. The balance in Kant's capital account includes an additional $5,000 investment during the year. 2. $1,500 of the note payable is due within the next year. 3. Kant and Adder share profit in the ratio of 2:1, respectively. Prepare an income statement, statement of partners' equity, and balance sheet. (Enter negative amounts using eit number e.g. -45 or parentheses e.g. (45). List Current Assets in order of liquidity. List items that increase partner's equity places, e.g. 5,275.) KANT-ADDER PARTNERSHIP Income Statement Month Ended March 31, 2021

Answer 1

Kant Added Partnership Kant Added Partnership Statement of Partner's Capital Income Statement For the year ended March 31, 2021 For the year ended March 31, 2021 U.Addar Revenue: I.Kant Total $25,000 $30,000 Service Revenue Capital April,1 $2,55,000 $55,000 Add: Expenses: Depreciation Expense Salaries Expense Interest Expense Rent Expense Supplies Expense Total Expense Profit/(Loss) $5,000 $40,333 $1,21,000 $8,000 $80,000 $5,000 $36,000 $5,000 $5,000 $80,667 $1,10,667 $70,333 $1,81,000 $90,000 Investment Profit /(Loss) $60,000 $1,50,000 Less: Drawings Capital March, 31 $20,667 $10,333 $31,000 $1,34,000 $1,21,000

Kant Added Partnership Date Debit Credit Account Title Dec 31 $2,55,000 Balance Sheet Service Revenue Income Summary $2,55,000 March 31, 2021 (To close revenue Account) Assets Dec 31 $1,34,000 Income Summary Current Assets Depreciation Expense Salaries Expense $14,000 $61,000 $1,500 $76,500 $8,000 Cash $80,000 Accounts Receivable $5,000 $36,000 $5,000 Supplies Interest Expense Rent Expense Supplies Expense (To close expesne account) Total Current Assets Equipment $42,000 -$12,000 $30,000 $1,06,500 Less: Accumulated Depreciation - Equipment Total Assets Dec 31 $1,21,000 Income Summary 1.Kant, Capital U.Addar, capital (To close income summary account) 1.Kant, Capital U.Addar, capital I.Kant, Drawings U.Addar, drawings Liabilities and Partners' Equity $80,667 $40,333 Current Liabilities Accounts Payable $12,500 $8,000 $1,500 $5,000 $27,000 Salaries Payable Notes Payable Dec 31 $90,000 $60,000 $90,000 $60,000 Unearned Revenue Total Current Liabilities (To close drawings account) Non Current Liabilities Notes Payable $48,500 $75,500 Total Liabilites Partners' Equity $20,667 $10,333 $31,000 I.Kant, Capital U.Addar, capital Total Partners' Equity Total Liabilities and Partners' Equity $1,06,500