Dr. J. Kovacik and Dr. S. Donovan have been operating a dental practice as a partnership for several years. The fixed profit and loss ratio is 60% for Dr. Kovacik and 40% for Dr. Donovan. The dental practice had the following general ledger account balances at November 30, 2021, its fiscal year end:

Cash ........................................................................................... $ 33,900
Supplies ........................................................................................ 16,150
Equipment .................................................................................. 176,300
Accumulated depreciation—equipment .................................. 41,450
Accounts payable ........................................................................ 15,700
Note payable, due 2025 ............................................................. 56,000
J. Kovacik, capital ......................................................................... 59,000
J. Kovacik, drawings ................................................................... 142,000
S. Donovan, capital ...................................................................... 33,000
S. Donovan, drawings .................................................................. 94,000
Service revenue .......................................................................... 425,000
Salaries expense .......................................................................... 80,100
Office expense ............................................................................ 83,600
Interest expense ........................................................................... 4,100

Instructions

a. Prepare financial statements for the partnership.

b. Prepare closing entries.