For Starrite Co., beginning capital balances on January 1, 2010, are Gary Stark $20,000 and Jim Nyland

Question:

For Starrite Co., beginning capital balances on January 1, 2010, are Gary Stark $20,000 and Jim Nyland $18,000. During the year, drawings were Stark $8,000 and Nyland $5,000. Net income was $30,000, and the partners share income equally.

Instructions

(a) Prepare the partners’ capital statement for the year.

(b) Prepare the owners’ equity section of the balance sheet at December 31, 2010.

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...