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Two separate business organizations, a partnership and a corporation, were formed on January 1, 19X5.
1. The initial invest ments of the pa rtners, Blue and Gray, were $25,000 and $20,000, respectively.
2. The Green Corporation have five stockholders, each own ing 90 shares of $100-par com mon.
At the end of the calendar year, the net income of each company was $15,000. (a) For each organization, show the proper entry to close the expense and income account. (b) Prepare a capital statement for the partnership and a stockholders' equity statement for the corpora tion, as of December 31, 19X5.
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