On April 1, 2014, Amber, Blake and Mark decided to form a partnership to start a small public accounting firm Amber, Blake and Mark have invested $79,000, $52,000 and $54,000 respectively Mark has also invested a piece of equipment that is worth $3,700 During the first year of operations in 2014, the firm earned a net income of $257,000 All earnings are to be divided according to the initial capital contribution of each partner In addition, Amber and Blake withdrew $7,000 and $8,100 cash from the business During the second year of operations in 2015, a new partner (Helga) was added to the firm Helga purchased 62 of Amber's investment and 15 of Mark's investment (equity) in the business a) Assume year end is on December 31, prepare the journal entries to set up the partnership, record the drawings, and distribute the income Also, prepare any additional closing or adjusting entries Do not enter dollar signs or commas in the input boxes Round all answers to the nearest whole dollar For transactions with more than one debit or credit, enter the accounts in alphabetical order Date Account Title and Explanation Debit Credit Jan 1 AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer To record set up of partnership Dec 31 AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer To record owner drawing accounts during the year Dec 31 AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer To close income summary account Dec 31 AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer To close drawing accounts b) Prepare the journal entry to record the admission of Helga Date Account Title and Explanation Debit Credit Jan 1 AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer AnswerAccounts PayableAccounts ReceivableCapital AmberCapital BlakeCapital HelgaCapital MarkCashDrawings AmberDrawings BlakeDrawings MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense Answer c) Calculate the ending capital balance of each partner Use the negative sign for values that must be subtracted Amber Blake Mark Helga Beginning Capital Balance, 2014 Answer Answer Answer Answer Share of net income, 2014 Answer Answer Answer Answer Subtotal Answer Answer Answer Answer Drawings, 2014 Answer Answer Answer Answer Capital transfer Answer Answer Answer Answer Ending Capital Balance, 2015 Answer Answer Answer Answer

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On April 1, 2014, Amber, Blake and Mark decided to form a partnership to start a small public accounting firm. Amber, Blake and Mark have

On April 1, 2014, Amber, Blake and Mark decided to form a partnership to start a small public accounting firm. Amber, Blake and Mark have invested $79,000, $52,000 and $54,000 respectively. Mark has also invested a piece of equipment that is worth $3,700. During the first year of operations in 2014, the firm earned a net income of $257,000. All earnings are to be divided according to the initial capital contribution of each partner. In addition, Amber and Blake withdrew $7,000 and $8,100 cash from the business. During the second year of operations in 2015, a new partner (Helga) was added to the firm. Helga purchased 62% of Amber's investment and 15% of Mark's investment (equity) in the business

a) Assume year-end is on December 31, prepare the journal entries to set up the partnership, record the drawings, and distribute the income. Also, prepare any additional closing or adjusting entries Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole dollar. For transactions with more than one debit or credit, enter the accounts in alphabetical order.

Date	Account Title and Explanation	Debit	Credit
Jan 1	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense		Answer
	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense		Answer
	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense		Answer
	To record set up of partnership

Dec 31	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense		Answer
	To record owner drawing accounts during the year

Dec 31	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense		Answer
	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense		Answer
	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense		Answer
	To close income summary account

Dec 31	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense		Answer
	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense		Answer
	To close drawing accounts

b) Prepare the journal entry to record the admission of Helga.

Date	Account Title and Explanation	Debit	Credit
Jan 1	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCapital - AmberCapital - BlakeCapital - HelgaCapital - MarkCashDrawings - AmberDrawings - BlakeDrawings - MarkEquipmentIncome SummaryInterest ExpenseInterest PayableInterest ReceivableInterest RevenueService RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense		Answer

c) Calculate the ending capital balance of each partner Use the negative sign for values that must be subtracted

	Amber	Blake	Mark	Helga
Beginning Capital Balance, 2014	Answer	Answer	Answer	Answer
Share of net income, 2014	Answer	Answer	Answer	Answer
Subtotal	Answer	Answer	Answer	Answer
Drawings, 2014	Answer	Answer	Answer	Answer
Capital transfer	Answer	Answer	Answer	Answer
Ending Capital Balance, 2015	Answer	Answer	Answer	Answer