Copperfield Developments is a partnership owned by Alvaro Rodriguez and Elisabetta Carrieri. On December 31, 2013, the

Question:

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.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...