Dec 31 Dec 31 = To close income summary account To close withdrawals accounts b) Prepare the journal entry to record the admission of Harry. Date Account Title and Explanation Jan 1 Debit Credit 4 To record admission of new partner c) Calculate the ending capital balance of each partner after the addition of Harry on January 1, 2021. On April 1, 2020, Arnold, Bryan and Mathieu form a limited liability partnership to start a small public accounting firm. Arnold, Bryan and Mathieu have invested $73,000, $56,000 and $69,000 respectively. Mathieu has also invested a piece of equipment that is worth $2,000. During the first year of operations in 2020, the firm earned a net income of $264,000. All earnings are to be divided according to the initial capital contribution of each partner. In addition, Arnold and Bryan withdrew $6,900 and $6,000 cash from the business. On January 1, 2021, a new partner (Harry) was added to the firm. Harry purchased 70% of Arnold's investment and 10% of Mathieu's investment (equity) in the business. a) Assume year-end is on December 31, prepare the journal entries to set up the partnership, record the withdrawals, and distribute the income for 2020. Also, prepare any additional closing or adjusting entries. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole dollar. For transactions with more than one debit or credit, enter the accounts in alphabetical order. Date Apr 1 Account Title and Explanation Dec 31 To record set up of partnership Debit Credit c) Calculate the ending capital balance of each partner after the addition of Harry on January 1, 2021. Use the negative sign for capital transfers that are subtracted. Arnold Beginning Capital Balance Add: Share of net income Subtotal Less: Withdrawals Capital transfer Ending Capital Balance Check Bryan Mathieu Harry