Maria Delgado and Oren Kelso are partners in a business. Statement paper, page 15 of a general journal, and a portion of the partnership's completed work sheet for the year ended December 31 of the current year are provided in the Working Papers. Your instructor will guide you through the following examples.

1. Prepare an income statement. Calculate and record the component percentages for total operating expenses and net income. Round percentage calculations to the nearest 0.1%.

2. Prepare a distribution of net income statement. Each partner is to receive 8% interest on January 1 equity. Also, partners’ salaries are Maria, \($15,000.00\) and Oren, \($14,000.00.\) The remaining net income, net loss, or deficit is shared equally.

3. Prepare an owners’ equity statement.

4. Journalize the closing entries.