1. The capital accounts of Hossam Abdel-Raja and Aly Meyer have balances of $90,000 and $65,000, respectively, on January 1, 2010, the beginning of the current fiscal year. On April 10, Abdel-Raja invested an additional $10,000. During the year, Abdel-Raja and Meyer withdrew $48,000 and $39,000, respectively, and net income for the year was $124,000. 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 Abdel-Raja and Meyer.