Angie Castillo and Reesa Cameron own The Garden and Lawn Shop. The partnership agreement provides that Castillo can withdraw $10,000 a month and Cameron, $9000 a month in anticipation of profits. The withdrawals, which are not considered to be salaries, were made each month. Net income and net losses are to be allocated 40 percent to Castillo and 60 percent to Cameron. For the year ended December 31, 20X1, the partnership earned a net income of $300,000.

INSTRUCTIONS
1. Prepare general journal entries to:
a. Close the Income Summary account.
b. Close the partners’ drawing accounts.
2. Assume that there was a net loss of $100,000 for the year instead of a profit of $300,000. Give the general journal entries to:
a. Close the Income Summary account.
b. Close the partners’ drawing accounts.
Analyze: Assume the business earned net income of $300,000. If 20X1 was the first year of operation, what balance should be reflected for the Reesa Cameron, Capital account at the end of the year if Cameron’s beginning capital was $220,000?