Chapter 12, Problem 12.26EX

a. 1

To determine

Partnership

It is that form of organization which is owned and managed by two or more persons who invest and share the profits and losses according to a pre-determined ratio.

To provide: The journal entries to close the Income Summary and expenses for the two partners.

a. 2

To determine

To provide: The journal entries to close the drawing accounts for the two partners.

b.

To determine

To prepare:  The statement of partnership equity for the current year.