Below is an alphabetical listing of the accounts in the general ledger of the Kant-Adder accounting firm at the partnership's fiscal year end, March 31, 2014. Adjusting entries for the year have been posted and included in these balances.

Additional information:
1. The balance in Kant's capital account includes an additional $5,000 investment during the year.
2. $1,500 of the note payable is due within the next year.
3. Kant and Adder share profit in the ratio of 2:1, respectively.
Instructions
(a) Prepare an income statement, statement of partners' equity, and balance sheet.
(b) Journalize the closing entries.
Taking It Further
Each partner's drawings are larger than their respective capital account balances. Is this a problem?

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Accounts payable Accounts receivable Accumulated depreciation-equipment Note payable Rent expense Salaries expense Salaries payable Depreciation expense Supplies expense U. Adder, capital U. Adder, drawings Unearned revenue I. Kant, capital I. Kant, drawings Interest expense