The capital accounts of Lorraine Grecco and Carrie Rosenfeld have balances of $$48,480$ and $$75,440,$ respectively, on January $1,20$Y$4,$ the beginning of the fiscal year. On March $10,$ Grecco invested an additional $$8,220.$ During the year, Grecco and Rosenfeld withdrew $$32,670$ and $$40,240,$ respectively, and net income for the year was $$62,000.$ Revenues were $$483,000,$ and expenses were $$421,000.$ The articles of partnership make no reference to the division of net income.

Required:

a$.$ Journalize the entries to close $(1)$ the revenues and expenses and $(2)$ the drawing accounts on December $31.$ Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

b$.$ Prepare a statement of partnership equity for the current year for the partnership of Grecco and Rosenfeld. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If a net loss is incurred or there is a decrease in partnership$$s equity, enter that amount as a negative number using a minus sign.

Answer rating: 100% (QA)

a 1 Journal entries to close revenues and expenses Debi... View the full answer