The Year 10 financial statements for a partnership, Fan Company A, have been provided on the “Year 10 Financial Statements” worksheet (see the “Partnership Income and Tax” attachment below). The Year 11 financial data is also provided on the “Year 11 Financial Data” worksheet (see the “Partnership Income and Tax” attachment below). Use ‘Admit Partner D to Partnership’ template section for this data.

AM 3630 – Dealership Accounting Front-End Transactions 1. Post the following transactions using the general journal: A. A wholesaler has a 2006 Taurus for $10,200, a 2004 F-150 for $20,100 and a 2002 Explorer for $15,500 you want to purchase for the used car lot. A single check can be cut for all three vehicles at once through a payable account. (Hint: There a two transactions in the journal.) Assign stock numbers UC0004, UT0002, and UT0003.
June 28, 2019
Tax problems – 1. Chuck, a single taxpayer, earns $75,250 in taxable income and $26,250 in interest from an investment in City of Heflin bonds.
June 28, 2019
Given:
The Year 10 financial statements for a partnership, Fan Company A, have been provided on the “Year 10 Financial Statements” worksheet (see the “Partnership Income and 
Tax” attachment below). The Year 11 financial data is also provided on the “Year 11 Financial Data” worksheet (see the “Partnership Income and Tax” attachment below).
Use ‘Admit Partner D to Partnership’ template section for this data.
On January 1, Year 11, Partner A died. The partnership agreement stipulated that in the event of a partner’s death, the partner’s interest would be paid to the estate within 
90 days of the date of death. The balances in the partnership accounts were determined on January 1. The partnership has the authority by the partnership agreement to sell 
the deceased partner’s interest at a minimum of 100% of the capital account at the date of death. The remaining partners found an interested party, Partner D, who paid 
$350,000 for Partner A’s interest. The partnership agreement specifies that any bonus accruing from the sale of a deceased partner’s interest will be added to the remaining 
partners as of the date of death. Partner B will receive 5/8 of the bonus and Partner C will receive 3/8 of the bonus.
PARTNER e PD 350000.  FOR 307120.00
Use ‘REALIGNMENT OF PARTNERSHIP ALLOCATIONS’ template section for this data.
On October 1, Year 11, the partners agreed to add a new partner. Partner E will own a 20% share of the partnership. Partner E has some expertise that will benefit the 
partnership. Partner E is investing $50,000 and land worth a fair market value of $200,000. The partnership will assume the $60,000 mortgage remaining on the land. The ownership allocations will be 
realigned to allow this new owner a 20% interest.
On December 31, Year 11:
The partnership agreement states that all capital balances are paid a 10% interest allowance based on the balance on December 31, before any 
distributions of net income or salary allowances. Partner E’s interest allowance in this first year will be based on three months of ownership interest in the partnership. 
The partnership agreement stipulates that Partner B and Partner C each receive a salary allowance of $30,000. 
A review of the withdrawals by the partners taken during the year revealed the following amounts for each partner: 
 Partner B, $60,000; Partner C, $35,000; Partner D, $15,000; and Partner E, $30,000. 
The remaining net income (loss) is distributed according to the partner’s share of ownership. Income and loss distributions are the same percentage.
Task:
A.  Perform the calculations necessary to complete the following financial statements using the information provided in the given and the Excel templates provided.
1.  Income Statement for Year 11 (Use the “Year 11 Partnership Distribution” worksheet found in the “Partnership Income and Tax” attachment below.)  
2.  Partnership Distribution for Year 11 (Use the “Year 11 Partnership Distribution” worksheet found in the “Partnership Income and Tax” attachment below.)
 
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