SAC Company is a partnership owned by K. Santiago, R. Astorga, and J. Camino, who share profits and losses in the ratio of 1:3:4. The adjusted trial balance of the partnership (in condensed form) at June 30, 2020, follows:

Required

1. Prepare the June 30, 2020, entries to close the Revenues, Expenses, Income Summary, and Withdrawals accounts.

2. Using T-accounts, insert the opening balances in the partners’ Capital accounts, post the closing entries to the Capital accounts, and determine each partner’s ending Capital balance.

Transcribed Image Text:

SAC COMPANY Adjusted Trial Balance June 30, 2020 Cash $ 166,000 Noncash assets 800,000 Liabilities $ 690,000 K. Santiago, capital 152,000 R. Astorga, capital 282,000 J. Camino, capital 428,000 K. Santiago, withdrawals 126,000 R. Astorga, withdrawals 272,000 J. Camino, withdrawals 312,000 Revenues 748,000 Expenses 624,000 Totals $2,300,000 $2,300,000