Preparing partnership financial statements
The partnership of Williams and Leblanc had these balances at April 30, 2012:
|
Cash |
$24,000 |
Service revenue |
$150,000 |
|
Liabilities |
42,000 |
Leblanc, capital |
26,000 |
|
Williams, capital |
15,000 |
Total expenses |
81,000 |
|
Other assets |
59,000 |
Williams gets 70% of profits and losses, and Leblanc 30%.
Requirement
1. Prepare the partnership’s income statement for the year ended April 30, 2012.