The capital accounts of Lorraine Grecco and Carrie Rosenfeld have balances of $46,850 and $72,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On March 10, Grecco invested an additional $8,360. During the year, Grecco and Rosenfeld withdrew $32,230 and $40,410, respectively, and net income for the year was $62,000. Revenues were $483,000, and expenses were $421,000. The articles of partnership make no reference to the division of net income.

Required:

a.

Journalize the entries to close (1) the revenues and expenses and (2) the drawing accounts on December 31. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

b.

Prepare a statement of partnership equity for the current year for the partnership of Grecco and Rosenfeld. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If a net loss is incurred or there is a decrease in partnerships equity, enter that amount as a negative number using a minus sign.

a. Journalize the entries to close (1) the revenues and expenses and (2) the drawing accounts on December 31. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Closing Entries
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b. Prepare a statement of partnership equity for the current year for the partnership of Grecco and Rosenfeld. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If a net loss is incurred or there is a decrease in partnerships equity, enter that amount as a negative number using a minus sign. If an amount box does not require an entry, leave it blank.

Grecco and Rosenfeld

Statement of Partnership Equity

1		Lorraine Grecco	Carrie Rosenfeld	Total
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