Copperfield Developments is a partnership owned by Alvaro Rodriguez and Elisabetta O’Grady. On December 31, 2023, the partners’ capital balances are Rodriguez $67,140 and O’Grady $78,140. During 2024, O’Grady invested $3,540 cash into the partnership, drawings were $36,010 by Rodriguez and $58,940 by O’Grady, and profit was $77,230. Rodriguez and O’Grady 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.