Dr. J. Kovacik and Dr. S. Donovan have been operating a dental practice as a partnership for several years. The fixed profit and loss ratio is 60% for Dr. Kovacik and 40% for Dr. Donovan. The dental practice had the following general ledger account balances at November 30, 2014, its fiscal year end:

Cash.....................................................$ 32,000

Supplies...................................................15,750

Equipment..............................................175,500

Accumulated depreciation-equipment.............41,250

Accounts payable.......................................15,000

Note payable, due 2018................................50,000

J. Kovacik, capital.......................................58,000

J. Kovacik, drawings..................................140,000

S. Donovan, capital.....................................32,000

S. Donovan, drawings..................................90,000

Fees earned.............................................422,000

Salaries expense..........................................78,500

Office expense...........................................81,500

Interest expense...........................................5,000

Instructions

(a) Prepare financial statements for the partnership.

(b) Prepare closing entries.