Part I

Requirement
Haskins and Sells Co.
Balance Sheet
January 2, 20x3

Assets Liabilities and Partners Equity

Current Assets Current Liabilities

Cash 55,000 Mortgage on building (Current Portion)
Trade Accounts Receivable 65,500 Non-Current Liabilities
Inventories 62,500 Mortgage on building
Note receivable (6 months) 50,000 Total Liabilities
Temporary investments 81,500
Total Current Assets 314,500
Partners Equity
Non-Current Assets Haskins, Capital
Building 370,000 Sells, Capital
Customer list 60,000 Total Owners Equity
Total Non-Current Assets 430,000

Total Assets 744,500 Total Liabilities and Owners Equity

Part II
Requirement A Requirement B
Haskins and Sells Co. Schedule for Partnership Ne
Income Statement
Year ended December 31,20X3
Revenue 650,000 Bonus
Selling , General and administrative expenses 70,000 10% of NI
Cost of Goods Sold 320,000 N/A
Total Expenses 390,000 Salaries
Net Income 260,000 90,000
70,000
Residue
20%
80%
Total

Requirement C
Haskins and Sells Co. Requirement D
Statement of Changes in Partners Equity
For the Year Ended December 31, 20X3
Haskins Sells Totals 0
Equity, Jan 1 327,000 242,500 569,500
Add Profit for 20X3 3,200
Salaries 90,000 70,000 160,000 90,000
Interest 26,000 0 26,000 26,364
Residue 14,800 59,200 74,000 15,454
Total Share in Profit 130,800 129,200 260,000 131,818
Total 457,800 371,700 829,500
Less: drawings 10,000 5,000 15,000
Equity, Dec 31 447,800 366,700 814,500
g (Current Portion) 25,000

150,000
175,000

327,000
242,500
569,500

Owners Equity 744,500

Schedule for Partnership Net Income Allocation

Haskins Sells Totals

26,000
0 26,000

90,000
70,000 160,000

14,800
59,200 74,000
130,800 129,200 260,000

Requirement D
A net income of 263,636 is needed to allow each partner to receive equal amounts.
 436 263,636 A process of trial and error
70,000 77,272
0 237,272
61,818
131,818