Preparing Partial Financial Statements and Closing Entries

The partnership of Robo and Swing, CPAs, reported revenues of $$215,000$ and expenses of $$80,000$ on their year$-$end work sheet. Their capital balances as of January $1,20--,$ were $$55,000$ for I. Robo and $$45,000$ for B$.$ Swing. No additional investments were made during the year. As stated in their partnership agreement, after withdrawing salary allowances of $$65,000$ for Robo and $$35,000$ for Swing, the partners each withdrew their full $10\%$ interest allowances on their January $1$ capital balances. No additional withdrawals were made. Any remaining net income is to be divided on a $4555$ basis.

Required:

Question Content Area

$1.$ Prepare the lower portion of the income statement of the partnership for the year ended December $31,20--,$ showing the division of the partnership net income for the year.

$2$a$.$ Prepare a statement of partners' equity for the year ended December $31,20--.$

$2$b$.$ Prepare the partners' equity section of the balance sheet as on December $31,20--.$

$3.$ Prepare closing entries for the partnership as of December $31,20--$: $($a$.)$ Close Revenue, $($b$.)$ Close Expenses, $($c$.)$ Close Net Income$/$Net Loss, $($d$.)$ Close Drawing accounts. $($For simplicity, use the account titles "Revenues" for all revenues and "Expenses" for all expenses.$)$