Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 4

Partnership entries and statement of partnership equity
The capital accounts of Angel Alvarez and Emma Allison have balances of $47,000 and $73,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On March 10, Alvarez invested an additional $8,000. During the year, Alvarez and Allison withdrew $32,000 and $39,000, respectively, and net income for the year was $62,000. Revenues were $483,000, and expenses were $421,000. The articles of partnership make no reference to the division of net income.
a. Journalize the entries to close (1) the revenues and expenses and (2) the drawing accounts.
b. Prepare a statement of partnership equity for the current year for the partnership of Alvarez and Allison.