Reference no: EM132921972

Question - Below is the adjusted trial balance for the partnership of J, K and L, group of CPA's in the practice of their profession.

JKL Partnership Adjusted Trial Balance Year Ended December 31, 2019

Cash 95,980

Accounts Receivable 167,850

Allowance for Doubtful Accounts 10,240

Supplies 24,120

Prepaid Insurance 18,090

Furniture and Equipment 788,650

Accumulated Depreciation - F&E 70,600

Accounts Payable 19,460

Salaries Payable 11,150

Utilities Payable 12,700

J. Capital 350,000

K. Capital 350,000

L. Capital 200,000

J. Drawing 52,000

K. Drawing 50,000

L. Drawing 30,000

Professional Service Fees 736,700

Salaries Expense 353,470

Rent Expense 98,000

Utilities Expense 76,140

Miscellaneous Expense 8,270

Interest Income 7,440

Interest Expense 5,720

Total 1,768,290 1,768,290

Additional Information: The profit and loss agreement of the partners is as follows:

i. Interest of 10% is to be paid on their beginning capital balances;

ii. The partners are entitled to salary allowances of 25,000, 20,000 and 20,000, respectively;

iii. Remaining balance is to be divided 4:3:3

Required - Prepare the following financial statements:

1. Statement of Income, with a schedule showing distribution of profits.

2. Statement of Changes in Partner's Equity.

3. Statement of Financial Position.