REQUIRED a) Prepare a statement of profit or loss for the year ended on 31 December 2020 b) Prepare a statement of appropriation of profit for the year ended on 31 December 2020 c) Prepare a statement of financial position as at 31 December 2020 d) Discuss the effect of following transactions on Assets, Liabilities and Shareholders' equity. Show also that accounting equation would remain in balance after these transactions. i. The partnership pays the staff salary of £5,000 to its employees on January 2021 (see note 1 above). The recording of depreciation on motor van at 31 December 2020 (see note 2 above) ii. Barbara and Hannah are partners who run an accounting and tax consultancy business. The partners share profits and losses 60% (Barbara) to 40% (Hannah) after paying themselves salaries of £20,000 (Barbara) and £25,000 (Hannah). Their accounting records show the following totals at 31 December 2020: Cash 60,000 Receivable from customers 44,000 Provision for doubtful debts at 1 January 2020 200 Motor vans: at cost 150,000 Motor vans: Accumulated depreciation at 1 January 2020 25,000 Payable to suppliers 4,000 Loan from bank 45,000 Capital: at 1 January 2020: Barbara 50,000 Capital: at 1 January 2020: Hannah 60,000 Current account at 1 January 2020: Barbara 25,000 Current account at 1 January 2020: Hannah 30,000 Drawings: Barbara Drawings: Hannah 40,000 35,000 Administrative expenses 28,000 Premises rent 38,000 Staffing salary 55,000 Utility expenses 14,000 Revenue 224,800 Notes: 1. Staff salary of £5,000 for the month of December has not yet been recorded and paid. 2. The partnership makes an allowance of 1% against the total trade receivables each year. 3. Depreciation is charged on motor van at 25% on the reducing balance method. The residual value of motor vans is NIL. 4. There were no acquisitions or disposals of non-current assets during the year. 5. The examination of the Premises rent account reveals that the partnership paid a rent of

The ledger of Tyler Lambert and Jayla Yost, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20Y3: Lambert and Yost Trial Balance December 31, 20Y3 Debit Balances Credit Balances Cash 34,000 Accounts Receivable 47,800 Supplies 2,000 Land 120,000 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 157,500 67,200 63,600 21,700 27,900 5,100 135,000 50,000 88,000 60,000 Professional Fees 395,300 Salary Expense Depreciation Expense-Building 154,500 15,700 Property Tax Expense 12,000 Heating and Lighting Expense Supplies Expense Depreciation Expense-Office Equipment Miscellaneous Expense 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, 2OY3. (Continued)

Required information [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $80,000, $112,000, and $128,000, respectively, in a partnership. During its first calendar year, the firm earned $249,000. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $249,000 net income under each of the following separate assumptions. 2. The partners agreed to share income and loss in the ratio of their beginning capital investments. Complete this question by entering your answers in the tabs below. Appropriation of profits Allocate $249,000 net income in the ratio of their beginning capital investments. Note: Do not round intermediate calculations. Supporting Computations General Journal Ries Bax Thomas Percentage of Total Equity X Income Summary Allocated Income to Capital

Showing your workings, answer the following question. “Carnita and Cornwall are in partnership. The following is their trial balance as at 31 October 2020.”     £ £ Capital Accounts: Carnita   400,000 Capital Accounts: Cornwall   500,000 Current Accounts: Carnita (at 1 November 2019)   164,000 Current Accounts: Cornwall  (at 1 November 2019) 41,200   Drawings Accounts: Carnita 200,000   Drawings Accounts: Cornwall 160,000   Premises at cost 1,600,000   Vehicles at cost 520,000   Accumulated depreciation on vehicles at 31 October 2020   500,000 Debtors 464,200   Creditors   539,400 Stock at 31 October 2020 268,800   Bank 67,200   Bank loan at 5%   800,000 Net profit for the year   396,000 Accrued expenses   22,000   3,321,400 3,321,400   “You are given additional information as follows:       i) Interest is charged on drawings, which has been calculated as: Carnita…