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Groucho, Harpo, and Chico form a partnership on January 1 , 2 0 2 1 . Groucho contributes $ 3 2 5 , 0 0

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Groucho, Harpo, and Chico form a partnership on January 1,2021. Groucho contributes $325,000, Harpo $195,000, and Chico $130,000 to a business called Marx Brothers' Partnership. On a monthly basis, each partner is allocated income and is allowed to receive cash from the business in proportion to the capital they provided. Assume that Groucho receives $6,600 cash per month.
Required:
a. Prepare the journal entry for the following transactions:
(i) The initial investment.
(ii) The monthly distribution amounts for each of the three partners.
(iii) The allocation of an annual net income of $234,000. For purposes of this journal entry, assume Sales Revenue totaled $351,000 and that all expenses, totaling $117,000, were recorded in a single account called Operating Expenses.
(iv) The closing of the drawings accounts at the end of the year.
b. Prepare a Statement of Partners' Equity (assume no additional investments made).
Complete this question by entering your answers in the table below.
Req a
Req b
Prepare a Statement of Partners' Equity (assume no additional investments made).
\table[[MARX BROTHERS' PARTNERSHIP],[Statement of Partners' Equity],[For the Year Ending December 31,2021],[,Groucho,Harpo,Chico],[Investments, January 1,2021],[,,,],[Totals],[,,,],[Partners' Equity, December 31,2021,,,]]
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