The capital accounts of Angel Alvarez and Emma Allison have balances of $47,000 and $73,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On March 10, Alvarez invested an additional $8,000. During the year, Alvarez and Allison withdrew $32,000 and $39,000, 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 referenceto the division of net income.a. Journalize the entries to close (1) the revenues and expenses and (2) the drawing accounts.b. Prepare a statement of partnership equity for the current year for the partnership of Alvarez and Allison.

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Asked Dec 19, 2019
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The capital accounts of Angel Alvarez and Emma Allison have balances of $47,000 and $73,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On March 10, Alvarez invested an additional $8,000. During the year, Alvarez and Allison withdrew $32,000 and $39,000, 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.
a. Journalize the entries to close (1) the revenues and expenses and (2) the drawing accounts.
b. Prepare a statement of partnership equity for the current year for the partnership of Alvarez and Allison.

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Step 1

a. (1)

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Account title Debit Credit Date Dec. 31 Revenues 483,000 Expenses Angel Alvarez, Capital Emma Allison, Capital 421,000 31,000 31,000 (To close revenue and expense account)

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Step 2

a. (2)

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Credit Account title Debit Date Angel Alvarez, Capital Emma Allison, Capital Angel Alvarez, Drawing Emma Allison, Drawing Dec. 31 32,000 39,000 32,000 39,000 (To close drawings account)

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