Exercise 12-7 Journalizing partnership transactions LO P2 On March 1, Eckert and Kelley formed a partnership Eckert contributed $100,000 cash, and Kelley contributed land Valued at $80,000 and a building valued at $110,000. The partnership also took Kelley's $90,000 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 530,000, 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 $21000 cash. After adjusting and dosing entries are made to the revenue and expense accounts at December 31, the income Summary account had a credit balance of $80,000 Required: 1o. & 1b. Prepare journal entries to record the partners initial capital investments and their subsequent cash withdrawals. 1c. Determine the partners' shares of income, and the 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. Red 1 and 10 Rec R2 Prepare journal entries to record the partner initial capital investments and their subsequent cach withdrawals. View transaction Bet Journal entry worksheet Record e per capital investment Dale Mars Oral Journal DELE C Med andry Ve generale Reg 10 > Journal entry worksheet Record the cash withdrawal of Eckert ($28,000) and Kelley ($21,000). Note: Enter debits before credits Date General Journal Debit Credit Oct 20 Record entry Clear entry View general Journal Bank Reg 10 > On March 1. Eckert and Kelley formed a partnership Eckert contributed $100.000 cash, and Kelley contributed land valued at $80,000 and a building valued at $110.000. The partnership also took Kelley's $90,000 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 $30,000, 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 $80,000 Required: 12. & 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 2. Determine the balances of the partners' capital accounts as of December 31 accounts Complete this question by entering your answers in the tabs below. Reg 1A and 15 Reg 10 RG 2 Determine the partners' shares of income, and then prepare journal entries to dose Income Summary and the partners withdrawals accounts. (Enter all allowances as positive values. Enter losses as negative values.) Allocation of Partnership income Eckart Kelley Total Net Income Salary slowances Balance of income interesowance Balance of income wance located equally Balance of income Share of the prva Deba Cred Date Oanan Journal Record entry to close the part www De Record the wylo dostu De Rey IA and 10 R2) On March 1, Eckert and Kelley formed a partnership. Eckert contributed $100,000 cash, and Kelley contributed land valued at $80,000 and a building valued at $110,000. The partnership also took Kelley's $90,000 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 $30,000, 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 $80,000 Required: 1o. & 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. Reg 1A and 10 Regic Reg 2 Determine the balances of the partners' capital accounts as of December 31 Capital Account Balances Eckart Kalley Initial investment Withdrawal Share of income Ending balances