Instructions
The capital accounts of Angel Alvarez and Emma Allison have balances of $48,480 and $75,440, respectively, on January 1, 2014, the beginning of the fiscal
year. On March 10, Alvarez invested an additional $8,220. During the year, Alvarez and Allison withdrew $32,670 and $40,240, 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.
Required:
A. Journalize the entries to close (1) the revenues and expenses and (2) the drawing accounts on December 31. Refer to the Chart of Accounts
for exact wording of account titles.
B. Prepare a statement of partnership equity for the current year for the partnership of Alvarez and Allison. Refer to the Amount Descriptions list
provided for the exact wording of the answer choices for text entries.