Frasier and Healey form a partnership on January 1, 2018, contributing $65,000 and $19,800, respectively. The partnership had net income of $166,000. Based on the partnership agreement, Frasier's share of net income was $98,000 and Healey's share was $68,000. Frasier and Healey each withdrew cash of $32,000 for personal use during the year.

Requirement 1. Journalize the entry to close net income to the partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Date			Accounts and Explanation	Debit	Credit

Requirement 2. Journalize closing the partners' withdrawal accounts. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. Prepare a compound entry to close both partners' withdrawal accounts.)

Date			Accounts and Explanation	Debit	Credit

Requirement 3. Calculate the balances in each partners' capital account after allocation of net income and partners' withdrawals of cash. This is the first year of the partnership, thus the beginning balances are 0 for each partner. For each line make sure the amount in the total column is the (amount for partner F + amount for partner H) on that line.

Enter any increases in capital prior to the subtotal and any decreases to capital below subtotal. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate cell.)

Frasier and Healey
Statement of Partners' Equity
For the Year Ended December 31, 2018
		Frasier	Healey	Total