Answer Happy

Wayne and Tammi are partners in The Ivy Arrow. The firm has supplied the following details as at December 31, 2017 DETAILS Sales Wages and Salaries Discount Allowed Loan Interest Creditors Return Outwards Rent Received Purchases Debtors Provision for Bad Debts Telephone Charges Bank Cash Land and Building Provision for Depreciation on Building Motor Vehicle Provision for Depreciation on Motor Vehicle Machinery and Equipment Provision for Depreciation on Machinery & Equipment Capital Wayne Capital Tammi Current Account Wayne Current Accounts Tammi Drawings Wayne Drawings Tammi 10% Loan Building Repairs Commission Received Opening Stock Insurance Office Supplies DR 68,000 6,200 15,000 310,200 54,350 12,000 18,200 220,000 290,000 132,000 60,000 20,000 80000 39,815 CR 570,000 61,315 8,500 14,000 3,200 79,300 45,000 24,000 13,200 100,000 150,000 30,000 270,000 50,000 34,600 21,500 36,650 1,418,515 1,418,515
Additional information at the end of the year a. Stock at the end of the year was valued at $64,000 b. Insurance is owing by $1500 c. Wages and salaries is owing by $2,000 d. Telephone charges is owing by $1,000 e. Commission is prepaid by $3,000 f. The provision for bad debts is to be adjusted to 10% of the debtors g. Depreciation is to be charged as follows Land and building Motor Vehicle Equipment 10% 10% 10% Reducing Balance Straight Line Reducing Balance Details of the partnership agreement included the following - Interest on drawings is to be calculated at 10% - Interest on capital is to be paid at 10% - Wayne is to be paid a salary of $20,000 - The partners are to share profits in the same ratio as their capital Required: Prepare the following for the year 2020: a. The Statement of Profit and Loss and Appropriation Account (29 marks) b. The Partners Current Account (11 marks) c. The Statement of Financial Position (21 marks)