Copperfield Developments is a partnership owned by Alvaro Rodriguez and Elisabetta Carrieri. On December 31, 2013, the partners' capital balances are Alvaro $61,000 and Elisabetta $79,000. During 2014, Elisabetta invested $4,000 cash into the partnership; drawings were $32,000 by Alvaro and $55,000 by Elisabetta, and profit was $77,000. Alvaro and Elizabetta share profit based on a 3:4 ratio.

Instructions

(a) Prepare the statement of partners' equity for the year.

(b) Prepare the partners' equity section of the balance sheet at year end.

(c) Prepare entries to close the income summary and drawings accounts.