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On March 1, 2015, Eckert and Kelley formed a partnership. Eckert contributed $99,000 cash and Kelley contributed land valued at $79,200 and a building valued

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On March 1, 2015, Eckert and Kelley formed a partnership. Eckert contributed $99,000 cash and Kelley contributed land valued at $79,200 and a building valued at $109,200. The partnership also assumed responsibility for Kelley's $89,000 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, 2015, Eckert withdrew $32,000 cash and Kelley withdrew $25,000 cash. After the adjusting and closing entries are made to the revenue and expense accounts at December 31, 2015, the Income Summary account had a credit balance of $80,000. 1a&b.Prepare journal entries to record the partners' Initial investments and their subsequent cash withdrawals. es RE View transaction list View journal entry worksheet No General Journal Date Mar 01, 2015 Credit 1 Debit 99,000 79,200 109,200 Cash Land Building Long-term note payable Eckert, Capital Kelley, Capital 89,000 99,000 99.400 2 Oct 20, 2015 Eckert, Withdrawals Kelley, Withdrawals Cash 32,000 25,000 57,000 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.) 80,000 29,000 Allocation of partnership income + Eckert Kelley Total Net Income Salary allowances $ 29,000 Balance of income Interest allowances 8,9101 5,130 Balance of income Balance allocated equally Balance of income $ Shares of the partners $ 37,910 $ 5,130 14,040 0 0 Journal entry worksheet Record the entry to close the partners' withdrawals accounts. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2015 Record entry Clear entry View general journal 2. Determine the balances of the partners' capital accounts as of December 31, 2015. Eckert Kelley Capital account balances Initial investment Withdrawals Share of income Ending balances $ 0 $ 0

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