ACCOUNTING - PLEASE HELP?
The capital accounts of Hogan and Moss have balances of $90,000 and $65,000, respectively on January 1, 2011, the beginning of the current fiscal year. On April 10, Hogan invested an additional $8,000. During the year, Hogan and Moss withdrew $40,000 and $32,000, respectively, and net income for the year was $98,000. The articles of partnership make no reference to the division of net income.
(1) Journalize the entries to:
A. Close the income summary account
B. Close the drawing accounts
(2) Prepare a statement of partners' equity for 2011 for the partnership of Hogan and Moss.