Southern Skies Co. had beginning capital balances on January 1 2017 as follows: Patty Sharp $30000 and Jim O'Connor $25000. During the year drawings were Sharp $15000 and O'Connor $8000. Net income was $40000 and the partners share income equally.
Instructions
Prepare the partners' capital statement for the year.

Question

Maurice Bruce · Accepted Answer

Final Answer :  SOUTHERN SKIES COMPANY Partners’ Capital Statement  Sharp   O’Connor   Total  Beginning Capital $ 30 , 000 $ 25 , 000 $ 55 , 000  Add: Net Income 20 , 000 ‾ 20 , 000 ‾ 40 , 000 ‾ 50 , 000 45 , 000 95 , 000 Less: Drawings 15 , 000 ‾ 8 , 000 ‾ 23 , 000 ‾  Ending Capital 35 , 000 ‾ $ 37 , 000 ‾ $ 72 , 000 ‾ \begin{array}{c}	ext {Partners '  Capital Statement}\\begin{array}{rrr} & 	ext { Sharp } & 	ext { O ' Connor } & 	ext { Total }\	ext {Beginning Capital} & \$ 30,000  &  \$ 25,000  &  \$ 55,000 \	ext { Add: Net Income} & \underline{20,000}  &  \underline{20,000} &  \underline{40,000} \ & 50,000 & 45,000 & 95,000\	ext {Less: Drawings} & \underline{15,000} &  \underline{8,000} &  \underline{23,000}\	ext { Ending Capital} & \underline{35,000} & \underline{\$37,000} & \underline{\$72,000}\end{array}\end{array} Partners’ Capital Statement Beginning Capital  Add: Net Income Less: Drawings  Ending Capital ​  Sharp  $30 , 000 20 , 000 ​ 50 , 000 15 , 000 ​ 35 , 000 ​ ​  O’Connor  $25 , 000 20 , 000 ​ 45 , 000 8 , 000 ​ $37 , 000 ​ ​  Total  $55 , 000 40 , 000 ​ 95 , 000 23 , 000 ​ $72 , 000 ​ ​ ​

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