The capital accounts of Angel Alvarez and Emma Allison have balances of $47,000 and $73,000, respectively, on
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The capital accounts of Angel Alvarez and Emma Allison have balances of $47,000 and $73,000, respectively, on January 1, 2016, the beginning of the fiscal year. On March 10, Alvarez invested an additional $8,000. During the year, Alvarez and Allison withdrew $32,000 and $39,000, respectively, and net income for the year was $62,000. The articles of partnership make no reference to the division of net income.
a. Journalize the entries to close (1) the income summary account and (2) the drawing accounts.
b. Prepare a statement of partnership equity for the current year for the partnership of Alvarez and Allison.
PartnershipA legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Related Book For
Accounting
ISBN: 978-1285743615
26th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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