The adjusted trial balance of the Ricci and Napoli Partnership for the year ended December 31, 2019, appears below:

RICCI AND NAPOLI PARTNERSHIP

Adjusted Trial Balance

December 31, 2019

Debit Credit

Current Assets $19,000

Plant Assets 80,000

Current Liabilities $7,000

Long-term debt 40,000

Ricci, Capital 20,000

Ricci, Drawings 4,000

Napoli, Capital 18,000

Napoli, Drawings 7,000

Sales Revenues 110,000

Cost of goods sold 62,000

Operating Expenses 23,000

$195,000 $195,000

The partnership agreement stipulates that a division of partnership net income or net loss is to be made as follows:

• A salary allowance of $12,000 to Ricci and $23,000 to Napoli.
• The remainder is to be divided equally.

Instructions

(a)Find the net income or net loss for 2019

(b)Compute the net income or net loss allocated to each partner

(c)Prepare the closing entries for the division of net income and for the drawings accounts