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, 2017, its fiscal year end:
Cash......................................................................$ 33,900
Supplies...................................................................16,150
Equipment...............................................................176,300
Accumulated depreciation-equipment..............................41,450
Accounts payable.......................................................15,700
Note payable, due 2021................................................56,000
J. Kovacik, capital.......................................................59,000
J. Kovacik, drawings..................................................142,000
S. Donovan, capital......................................................33,000
S. Donovan, drawings...................................................94,000
Fees earned............................................................$425,000
Salaries expense.........................................................80,100
Office expense...........................................................83,600
Interest expense...........................................................4,100
Instructions
(a) Prepare financial statements for the partnership.
(b) Prepare closing entries.