Check my w Exercise 12-7 Journalizing partnership transactions LO P2 On March 1, 2017, Eckert and Kelley formed a partnership. Eckert contributed $71,000 cash and Kelley contributed land valued at $56,800 and a building valued at $86,800. The partnership also assumed responsibility for Kelley's $61,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert is to receive an annual salary allowance of $29,000, both are to receive an annual interest allowance of 9% of their beginning-year capital investment, and any remaining income or loss is to be shared equally. On October 20, 2017, Eckert withdrew $31,000 cash and Kelley withdrew $24,000 cash. After the adjusting and closing entries are made to the revenue and expense accounts at December 31, 2017, the Income Summary account had a credit balance of $94,000. Required 1a. & 1b. Prepare journal entries to record the partners' initial investments and their subsequent cash withdrawals 1c. Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the partners Withdrawals accounts. 2. Determine the balances of the partners' capital accounts as of December 31, 2 Complete this question by entering your answers in the tabs below Req 1A and 1B Req 1C Req 2 Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawals. View transaction list View journal entry worksheet Debit Credit No General Journal 1 Mar 01, 2017 Cash Land Building Long-term note payable Eckert, Capital Kelley, Capital Allocation of Partnership Income Eckert Kelley Total Net Income Salary allowances Balance of income Interest allowances Balance of income Balance allocated equally Balance of income Shares of the partners Date General Journal DebitCredit Record the entry to close the partners' withdrawals accounts Dec 31, 2017 Record the entry to close the income summary account Dec 31, 2017 Req 1A and 1B Req 2 > Next > Prev 60f 8 Check my wo Exercise 12-7 Journalizing partnership transactions LO P2 On March 1. 2017. Eckert and Kelley formed a partnership. Eckert contributed $71,000 cash and Kelley contributed land valued at $56,800 and a building valued at $86,800. The partnership also assumed responsibility for Kelley's $61,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert is to receive an annual salary allowance of $29,000, both are to receive an annual interest allowance of 9% of their beginning-year capital investment and any remaining income or loss is to be shared equally On October 20, 2017, Eckert withdrew $31,000 cash and Kelley withdrew $24.000 cash fter the adjusting and closing entries are made to the revenue and expense accounts at December 31, 201 had a credit balance of $94,000. ts 02:0107 7, the Income Summary account eBook Required 1o. & 1b. Prepare journal entries to record the partners' initial investments and their subsequent cash withdrawals 1c. Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the partners Withdrawals accounts. Hint 2. Determine the balances of the partners' capital accounts as of December 31, 2017 Print Complete this question by entering your answers in the tabs below. eferences 1A and 18 Req 1C Req 2 Determine the balances of the partners' capital accounts as of December 31, 2017 Capital Account Balances Eckert Initial investment Withdrawals Share of income Ending balances Req 1C