Groucho, Harpo, and Chico form a partnership on January 1, 2018. 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:

1. a-d. 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.

2. e. Prepare a Statement of Partners' Equity (assume no additional investments made).

Complete this question by entering your ans wers in the table below Required A to Required E Prepare the journal entry for the following transactions: (If no entry is required for a transaction/even Required" in the first account field.) (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 Sa 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 View transaction list Journal entry worksheet Record the entry for the initial investment. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal red A to D Required E Complete this question by entering your answers in the table below Required A toRequired E Prepare a Statement of Partners' Equity (assume no additional investments made) MARX BROTHERS' PARTNERSHIP Statement of Partners Equity For the Year Ending December 31, 2018 Groucho Harpo Chico Investments, January 1, 2018 Totals Partners' Equity, December 31, 2018