Question: Preparing distribution of net income and owners' equity statements Northern Lights is a partnership owned by Loane Le and Wheatonia Makebu. Information from Northern Lights' worksheet and income statement is given below. Forms for completing these problems are given in the Working Papers. Work this problem independently.
1. Prepare a distribution of net income (NI) statement for Northern Lights. Net income or loss is to be distributed 60% to Mr. Le and 40% to Ms. Makebu.
2. Using the balances of the general ledger capital and drawing accounts from the work sheet, prepare an owners' equity statement for Northern Lights. No additional investments were made.