The Capital Accounts of Heidi and Moss Have Balances of $90,000

question 173

Essay

The capital accounts of Heidi and Moss have balances of $90,000 and $65,000, respectively, on January 1, the beginning of the current fiscal year. On April 10, Heidi invested an additional $8,000. During the year, Heidi and Moss withdrew $40,000 and $32,000, respectively. Revenues were $540,000 and expenses were $420,000 for the year. The articles of partnership make no reference to the division of net income.
Required
(1)Prepare a statement of partners' equity for the partnership of Heidi and Moss.
(2)Journalize the entries to:
(a)Close the revenue and expenses account.
(b)Close the drawing accounts.?

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