Ms. Emy Co is an industrial partner in an electronics company getting a monthly salary allowance of P25,000 when the company started operation on March 1, 2020. Two capitalist partners invested P1,000,000 each, Marcia Glas and Corrie Prieto. At the end of the first year of operation the business incurred a net loss of P50,000 but at the end of the following year the business recovered and earned P650,000 profit.

Direction: a) Give the entries to record the transactions for 2021 and 2020

b) Prepare a statement of partners equity for two years ended Dec 31, 2020 and 2021.