Exercise D-7 Journalizing partnership transactions LO P2 On March 1, 2017, Eckert and Kelley formed a partnership. Eckert contributed $93,000 cash and Kelley contributed land valued at $74.400 and a building valued at $104,400. The partnership also assumed responsibility for Kelley's $83,000 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, 2017 Complete this question by entering your answers in the tabs below. Rea IA and ID Regic Req 2 Prepare journal entries to record the partners' Initial capital investments and their subsequent cash withdrawals. View transaction list Req 1A and 1B Req 1C Reg 2 Prepare journal entries to record the partners initial capital investments and their subsequent cash withdrawals. View transaction list ww Journal entry worksheet Record the partners' initial capital investment. Note: Enter debits before credits Date Mar 01. 2017 General Journal Debit Credit 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 Journal entry worksheet Record the cash withdrawal of Eckert ($31,000) and Kelley ($24,000). Note: Enter debits before credits. General Journal Date Oct 20, 2017 | Debit Credit Reg 2 Req 1A and 1B Req 1C Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the partners Withdrawals accounts. (Enter all values as positive amounts.) 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 Debit Credit Date General Journal Record the entry to close the partners' withdrawals accounts Dec 31, 2017 Balance allocated equally Balance of income Shares of the partners ESOS Debit Credit Date General Journal Record the entry to close the partners' withdrawals accounts. Dec 31, 2017 Record the entry to close the income summary account Dec 31, 2017 2. Determine the balances of the partners' capital accounts as of December 31, 2017 Complete this question by entering your answers in the tabs below. Req 1A and 1B Req 1C Reg 2 Determine the balances of the partners' capital accounts as of December 31, 2017. Eckert Kelley Capital Account Balances Initial investment Withdrawals Share of income Ending balances $ 0 $
