Reference no: EM132531579

Veda Storey and Gordon Rogers have a partnership agreement with the following provisions for sharing profit or loss:

1. A salary allowance of $29,400 to Storey and $40,300 to Rogers

2. An interest allowance of 5% on capital balances at the beginning of the year

3. The remainder to be divided between Storey and Rogers on a 2:3 basis

• The capital balances on January 1, 2021, for Storey and Rogers were $75,000 and $102,000, respectively. For the year ended December 31, 2021, the Crane Partnership had sales of $339,000; cost of goods sold of $246,000; operating expenses of $128,000; V. Storey drawings of $24,700; and G. Rogers drawings of $30,500.

Question a) Make an income statement for Crane Partnership for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Question b) Show a schedule to show how the profit or loss will be allocated to the two partners. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Question c) Make a statement of partners' equity for the year.

Question d) Make closing entries at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)