PARTNERSHIP EQUITY ACCOUNTING. Teresa Felix and Laura Bramer operate a small accounting practice as a partnership. For 19x4 the following data are available for Teresa and Laura:

During 19x4, partnership net income was $149,400. The partnership agreement requires that 50% of income or losses be divided equally and that the other 50% be divided according to the partners’ equity, with equity being defined as beginning equity less half of drawings.
REQUIRED:
1. Prepare the journal entries to record each partner’s drawings.
2. Determine the division of partnership net income, and then prepare a journal entry to close the partnership income summary account.
3. What is each partner’s end-of-period equity account balance?

Transcribed Image Text:

TERESA LAURA FELIX BRAMER Equity, 1/1/x4 Drawings $75,000 $56,800 62,400 55,200