Question: Emily Jackson (Social Security number 765-12-
Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnership’s first year of operation is 2018. Emily and James divide income and expenses equally. The partnership name is J&S Barbers, it is located at 1023 Broadway, New York, NY 10004, and its Federal ID number is 95-6767676. The 2018 financial statements for the partnership are presented below.
Emily lives at 456 E. 70th Street, New York, NY 10006, and James lives at 436 E. 63rd Street, New York, NY 10012.
Required:
Complete J&S Barbers’ Form 1065 and Emily and James’ Schedule K-1s. Do not fill in Schedule D for the capital loss, Form 4562 for depreciation, or Schedule B-1 related to ownership of the partnership. Make realistic assumptions about any missing data.
Transcribed Image Text:
JES Barbers Income Statement for the Year Ending December 31, 2018 $372,300 Gross income from operations Deductions: Salaries to employees Payroll taxes Supplies Rent 94,600 14,500 9,000 41,000 5,100 2,000 500 $205,600 $ 80,000 Depreciation Short-term capital loss Charitable contributions Net income Partners' withdrawals (each partner) JES Barbers Balance Sheet as of December 31, 2018 Assets: $100,450 10,000 Cash Accounts receivable Equipment Accum. depreciation $32,000 (5,100) 26,900 $137,350 Liabilities and Capital: Accounts payable Notes payable Partners' capital ($20,000 contributed by each partner) $ 29,750 22,000 85,600 $137,350
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