Prepare a statement of partners capital for the year

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Reference no: EM133080240

Question - You are given the following data for the partnership of B. White and C. Green.

B. White and C. Green Partnership Trial Balance December 31, 2021

Debit Credit

Cash $41,000

Accounts receivable 68,400 Inventory 27,000

Accounts payable $45,800 B. White, capital 30,000

B. White, withdrawals 7,000 C. Green, capital 20,000

C. Green, withdrawals 5,000 Sales 322,000

Cost of goods sold 160,500 Rent expense 36,000

Advertising expense 27,200 Delivery expense 9,600

Office expense 12,800 Utilities expense 23,300

Total $417,800 $417,800

Each partner contributed $10,000 capital during the year; the opening credit balance in each capital account was White $20,000 and Green $10,000. The partners share profits and losses equally.

Required -

1. Prepare an income statement for the year.

2. Prepare a statement of partners' capital for the year.

3. Prepare a balance sheet at December 31, 2021.

4. Prepare closing entries at year-end.

Reference no: EM133080240

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