Partnership entries and statement of partners equity
The capital accounts of Gary Menendez and Melissa Breeden have balances of $75,000 and $55,000, respectively, on January 1, 2012, the beginning of the current fiscal year. On April 10, Menendez invested an additional $12,000. During the year, Menendez and Breeden withdrew $44,000 and $35,000, respectively, and net income for the year was $92,000. The articles of partnership make no reference to the division of net income.
a. Journalize the entries to close (1) the income summary account and (2) the drawing accounts.
b. Prepare a statement of partners' equity for the current year for the partnership of Menendez and Breeden.