Northern Co. had beginning capital balances on January 1, 2012, as follows: Andy Golic $30,000 and Jim

Question:

Northern Co. had beginning capital balances on January 1, 2012, as follows: Andy Golic $30,000 and Jim Carney $25,000. During the year, drawings were Golic $15,000 and Carney $8,000. Net income was $40,000, and the partners share income equally.

Instructions
Prepare the partners’ capital statement for the year.