Exercise 12-06 a-b (Part Level Submission) (Video) For National Co., beginning capital balances on January 1, 2020, are Nancy Payne $20,000 and Ann Dody $18,000. During the year, drawings were Payne $8,000 and Dody $5,000. Net income was $40,000, and the partners share income equally.

(a)

	Your answer is correct.

Prepare the partners capital statement for the year. (List items that increase partners' capital first.)

NATIONAL CO. Partners Capital Statement For the Year Ended December 31, 2020December 31, 2020For the Month Ended December 31, 2020
	N. Payne		A. Dody		Total
DrawingsExpensesNet Income / (Loss)Capital, January 1Capital, December 31RevenuesTotal ExpensesTotal Revenues	$		$		$
AddLess : DrawingsExpensesNet Income / (Loss)Capital, January 1Capital, December 31RevenuesTotal ExpensesTotal Revenues
AddLess : DrawingsExpensesNet Income / (Loss)Capital, January 1Capital, December 31RevenuesTotal ExpensesTotal Revenues
DrawingsExpensesNet Income / (Loss)Capital, January 1Capital, December 31RevenuesTotal ExpensesTotal Revenues	$		$		$

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(b)

Prepare the owners equity section of the balance sheet at December 31, 2020.

NATIONAL CO. Partial Balance Sheet December 31, 2020For the Year Ended December 31, 2020For the Month Ended December 31, 2020
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentOwners' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Owners' Equity
Net Income N. Payne, Capital Capital, January 1 Drawings Capital, December 31 A. Dody, Capital			$
Capital, January 1 Net Income A. Dody, Capital Capital, December 31 Drawings N. Payne, Capital
Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Owners' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Owner's Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Owners' Equity					$