The capital accounts of Heidi and Moss have balances of $90,000 and $65,000, respectively, on January 1, the beginning of the current fiscal year. On April 10, Heidi invested an additional $8,000. During the year, Heidi and Moss withdrew $40,000 and $32,000, respectively. Revenues were $540,000 and expenses were $420,000 for the year. The articles of partnership make no reference to the division of net income. Required: 1. Prepare a statement of partners' equity for the partnership of Heidi and Moss. If an amount box does not require an entry, leave it blank. Enter all amounts as positive numbers. Heidi and Moss Statement of Partners' Equity For the Year Ended December 31 Heidi Moss Total Capital, January 1 $fill in the blank 7e8152f83026faf_2 $fill in the blank 7e8152f83026faf_3 $fill in the blank 7e8152f83026faf_4 Additional investment during the year fill in the blank 7e8152f83026faf_6 fill in the blank 7e8152f83026faf_7 fill in the blank 7e8152f83026faf_8 $fill in the blank 7e8152f83026faf_9 $fill in the blank 7e8152f83026faf_10 $fill in the blank 7e8152f83026faf_11 Net income for the year fill in the blank 7e8152f83026faf_13 fill in the blank 7e8152f83026faf_14 fill in the blank 7e8152f83026faf_15 $fill in the blank 7e8152f83026faf_16 $fill in the blank 7e8152f83026faf_17 $fill in the blank 7e8152f83026faf_18 Withdrawals during the year fill in the blank 7e8152f83026faf_20 fill in the blank 7e8152f83026faf_21 fill in the blank 7e8152f83026faf_22 Capital, December 31 $fill in the blank 7e8152f83026faf_24 $fill in the blank 7e8152f83026faf_25 $fill in the blank 7e8152f83026faf_26 2. Journalize the entries to: Close the revenue and expenses account. Close the drawing accounts. If an amount box does not require an entry, leave it blank.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
The capital accounts of Heidi and Moss have balances of $90,000 and $65,000, respectively, on January 1, the beginning of the current fiscal year. On April 10, Heidi invested an additional $8,000. During the year, Heidi and Moss withdrew $40,000 and $32,000, respectively. Revenues were $540,000 and expenses were $420,000 for the year. The articles of
Required:
1. Prepare a statement of partners' equity for the partnership of Heidi and Moss. If an amount box does not require an entry, leave it blank. Enter all amounts as positive numbers.
| Heidi and Moss | |||
| Statement of Partners' Equity | |||
| For the Year Ended December 31 | |||
| Heidi | Moss | Total | |
| Capital, January 1 | $fill in the blank 7e8152f83026faf_2 | $fill in the blank 7e8152f83026faf_3 | $fill in the blank 7e8152f83026faf_4 |
| Additional investment during the year | fill in the blank 7e8152f83026faf_6 | fill in the blank 7e8152f83026faf_7 | fill in the blank 7e8152f83026faf_8 |
| $fill in the blank 7e8152f83026faf_9 | $fill in the blank 7e8152f83026faf_10 | $fill in the blank 7e8152f83026faf_11 | |
| Net income for the year | fill in the blank 7e8152f83026faf_13 | fill in the blank 7e8152f83026faf_14 | fill in the blank 7e8152f83026faf_15 |
| $fill in the blank 7e8152f83026faf_16 | $fill in the blank 7e8152f83026faf_17 | $fill in the blank 7e8152f83026faf_18 | |
| Withdrawals during the year | fill in the blank 7e8152f83026faf_20 | fill in the blank 7e8152f83026faf_21 | fill in the blank 7e8152f83026faf_22 |
| Capital, December 31 | $fill in the blank 7e8152f83026faf_24 | $fill in the blank 7e8152f83026faf_25 | $fill in the blank 7e8152f83026faf_26 |
2.
- Close the revenue and expenses account.
- Close the drawing accounts.
If an amount box does not require an entry, leave it blank.
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