Question

2. Dec. 31 capital-Yost, $125,000and balances after adjustments have been recorded on December 31, 20Y3: PR 12-3A Financial statements for partnership The ledger of Tyler Lambert and Jayla Yost, attorneys-at-law, contains the following accounts OBJ. 2,5 Lambert and Yost Trial Balance December 31, 20Y3 Excel Debit Credit Balances Balances Cash 34,000 47,800 2,000 120,000 157,500 Accounts Receivable Supplies Land Building Accumulated Depreciation-Building Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Salaries Payable Tyler Lambert, Capital Tyler Lambert, Drawing Jayla Yost, Capital Jayla Yost, Drawing Professional Fees Salary Expense Depreciation Expense-Building Propeny Tax Expense Heating and Lighting Expense Supplies Expense Depreciation Expense-Office Equipment Miscellaneous Expense 67,200 63,600 21,700 27,900 5,100 135,000 50,000 60,000 88,000 154,500 395,300 15,700 2,000 8,500 6,000 5,000 3,600 740,200 740,200 The balance in Yost's capital account includes an additional investment of $10,000 made on April 10, 20Y3. Continued)

Answer 1

A 1)

Lamber and Yost
Income Statement
For the Year Ended Dec 31, 20Y3
	Amount ($)
Professional fees	3,95,300.00	(A)
Expenses:
Salary expenses	1,54,500.00
Depreciation expenses - Building	15,700.00
Property tax expense	12,000.00
Heating and lighting expenses	8,500.00
Supplies expenses	6,000.00
Depreciation expense - Office equipment	5,000.00
Misc expense	3,600.00
Total expense	2,05,300.00	(B)
Profit for the year	1,90,000.00	(A)-(B)
Allocation of Profit of the year of $ 190,000:
Description	Tyler Lambert	Jayla Yost	Total
	Amount (in$)	Amount (in$)	Amount (in$)
Salary	45,000.00	54,700.00	99,700.00
10% int on opening capital	13,500.00	7,800.00	21,300.00
For Yost we need to deduct $10,000 contribution from closing balance, as $10,000 was contribution done in current year
Residual profit (equally)	34,500.00	34,500.00	69,000.00
Net income	93,000.00	97,000.00	1,90,000.00

A 2)

Lamber and Yost
Statement of Partnership Equity
As of Dec 31, 20Y3
	Tyler Lambert	Jayla Yost	Total
	Amount (in$)	Amount (in$)	Amount (in$)
Capital Balance as of 1/Jan/20Y3	1,35,000.00	78,000.00	2,13,000.00
Additional Capital	-	10,000.00	10,000.00
Closing capital account balances as of Dec 31,20Y3	1,35,000.00	88,000.00	2,23,000.00
Net income	93,000.00	97,000.00	1,90,000.00
Less: withdrawals	-50,000.00	-60,000.00	-1,10,000.00
Closing current account balances as of Dec 31,20Y3	43,000.00	37,000.00	80,000.00

*Current account is not used then student will have to merge the balances of capital account and current account , and merged figure will be shown as capital account balance

A3)

Lamber and Yost
Balance Sheet
As of Dec 31, 20Y3
	Amount ($)		Computation explanation
Non current Assets:
Land	1,20,000.00
Building	90,300.00		(157,500-67,200)
Office equipment	41,900.00		(63,600-21,700)
Total of Non current Assets:	2,52,200.00	(A)
Current Assets
Cash	34,000.00
Accounts Receivable	47,800.00
Supplies - Inventory	2,000.00
Total of Current Assets	83,800.00	(B)
Total Assests	3,36,000.00	(A)+(B)
Capital and liabilities
Capital
Capital - Tyler Lambert	1,35,000.00
Capital - Jayla Yost	88,000.00
Current account - Tyler Lambert	43,000.00
Current account - Jayla Yost	37,000.00
Total capital and current account	3,03,000.00	(D)
Current Liabilities
Accounts payable	27,900.00
Salaries payable	5,100.00
Total of Current Liabilities	33,000.00	(F)
Total of capital, current account and current liabilities	3,36,000.00	(D)+(F)

Highlighted balances matched. Hence our balance sheet tallied.

*Current account is not used then student will have to merge the balances of capital account and current account , and merged figure will be shown as capital account balance