On April 1, 2020, Harry Regal and Meghan Merle formed a partnership In Alberta, renting reusable moving boxes. Contribution Profit sharing Cash withdrawal during year Regal $97,000 cash $107,000 salary allowance 15% of original capital investments $77,000 Merle $137,000 land $50,000 building 15% of original capital investments $62,000 Net Income during the year was $177,000 and was in the Income Summary account. The partners agreed to share profit by allowing salary allowance, interest on their initial investments, and sharing the balance equally. Required: 1. Present general journal entries to record the initial capital investments of the partners, their cash withdrawals, and the December 31 closing of the Income Summary and withdrawals accounts. View transaction list Journal entry worksheet 1 Record the initial capital investments. View transaction list Journal entry worksheet < 1 2 3 Record the partners' withdrawals. Note: Enter debits before credits. Date General Journal Debit Credit 135,250 135,250 December 31, 2020 Meghan Merle, withdrawals Cash Mout The partners agreed to share profit by allowing UN their initial Investments, and sharing the balance equally. Required: 1. Present general journal entries to record the initial capital investments of the partners, their cash withdrawals, and the December 2 closing of the Income Summary and withdrawals accounts. View transaction list Journal entry worksheet < 1 3 Record the allocation of profit and close the Income summary account. Note: Enter debits before credits. Date December 31, 2020 General Journal Debit Credit Required: 1. Present general journal entries to record the initial capital investments of the partners, their cash withdrawals, and the December 31 closing of the Income Summary and withdrawals accounts. View transaction list Journal entry worksheet < 3 4 Record the entry to close withdrawals accounts. Note: Enter debits before credits. Date General Journal Debit Credit 77,000 77,000 62,000 62.000 December 31, 2020 Harry Regal, capital Cash: Meghan Merle, capital Cash Next >