Kimble, Sykes, and Gerard open an accounting practice on January 1, 2019, in Chicago, Illinois, to be operated as a part

[answerhappygod]

Kimble, Sykes, and Gerard open an accounting practice on January1, 2019, in Chicago, Illinois, to be operated as a partnership.Kimble and Sykes will serve as the senior partners because of theiryears of experience. To establish the business, Kimble, Sykes, andGerard contribute cash and other properties valued at $303,000,$227,500, and $139,500, respectively. An articles of partnershipagreement is drawn up stipulating the following:
On January 1, 2020, the partners admit Nichols to thepartnership. Nichols contributes cash directly to the business inan amount equal to a 25 percent interest in the book value of thepartnership property subsequent to this contribution. Thepartnership profit and loss sharing agreement is not altered uponNichols' entrance into the firm; the general provisions continue tobe applicable.
The billable hours for the partners during the first three yearsof operation follow:
The partnership reports net income (loss) for 2019 through 2021as follows:
Each partner withdraws the maximum allowable amount eachyear.
Prepare schedules that allocate each year's net income to thepartners.
Prepare in appropriate form a statement of partners’ capital forthe year ending December 31, 2021.
Prev