Below is an alphabetical listing of the accounts in the general ledger of the Kant-Adder accounting firm at the partnership's fiscal year end, March 31, 2017. Adjusting entries for the year have been posted and included in these balances.

Additional information:
1. The balance in Kant's capital account includes an additional $5,000 investment during the year.
2. $1,500 of the note payable is due within the next year.
3. Kant and Adder share profit in the ratio of 2:1, respectively.
Instructions
(a) Prepare an income statement, statement of partners' equity, and balance sheet.
(b) Journalize the closing entries.
TAKING IT FURTHER
Each partner's drawings are larger than their respective capital account balances. Is this a problem? Why or why not?

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Accounts payable Accounts receivable 12,500 Note payable 61,000 Rent expense 12,000 Salaries expense 14,000 Salaries payable 50,000 36,000 80,000 8,000 1,500 5,000 30,000 60,000 5,000 Accumulated depreciation-equipment Depreciation expense Supplies Supplies expense U. Adder, capital U. Adder, drawings Unearned revenue 8,000 42,000 Fees earned I. Kant, capital I. Kant, drawings Interest expense 255,000 30,000 90,000 5,000