Exercise 12-7 Journalizing partnership transactions LO P2 On March 1, Eckert and Kelley formed a partnership. Eckert contributed $97,000 cash, and Kelley contributed land valued at $77,600 and a building valued at $107,600. The partnership also took Kelley's $87,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $31,000, both get an annual interest allowance of 8% of their initial capital investment, and any remaining income or loss is shared equally. On October 20, Eckert withdrew $28,000 cash and Kelley withdrew $21,000 cash. After adjusting and closing entries are made to the revenue and expense accounts at December 31, the Income Summary account had a credit balance of $99,000. Required: 1a. & 1b. Prepare journal entries to record the partners' initial capital 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. Complete this question by entering your answers in the tabs below. Req 1A and 18 Reg 2 Req 10 Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the partners' withdrawals accounts. (Enter all allowances as positive values. Enter losses as negative values.) Allocation of Partnership Income Eckert Kelley Total Net Income Salary allowances 0 Balance of income Interest allowances 0 Balance of income Balance allocated equally Balance of income $ 0 Shares of the partners $ 0 $ Date General Journal Credit Debit Record the entry to close the partners' withdrawals accounts. Dec 31 Record the entry to close the income summary account. Dec 31 Required: 1a. & 1b. Prepare journal entries to record the partners' initial capital 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. Complete this question by entering your answers in the tabs below. Req 1A and 1B Req 1c Req 2 Determine the balances of the partners' capital accounts as of December 31. Capital Account Balances Initial investment Eckert Kelley Withdrawals Share of income 0 Ending balances S