Question

The capital accounts of Lorraine Grecco and Carrie Rosenfeld have balances of $64,000 and $99,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On March 10, Grecco invested an additional $11,000. During the year, Grecco and Rosenfeld withdrew $43,000 and $53,000, respectively, and net income for the year was $84,000. Revenues were $654,000, and expenses were $570,000. The articles of partnership make no reference to the division of net income.

Answer 1

Requirement: Journalize the entry to close the revenues and expenses. If an amount box does not require an entry, leave it blank. Lorraine Grecco, Capital Carrie Rosenfeld, Capital Journalize the entry to close the drawing accounts. If an amount box does not require an entry, leave it blank

Account Titles Debit Credit

Revenues $654,000

Expenses 570,000

Lorraine Grecco, Capital $42,000

Carrie Rosenfeld ,Capital $42,000

Lorraine Grecco, Capital $43,000

Carrie Rosenfeld ,Capital $53,000

Lorraine Grecco, Drawing $43,000

Carrie Rosenfeld ,Drawing $53,000