On March 1, 2020, Amy, Bob, and Mike form a limited liability partnership to start a small public accounting firm. Amy, Bob, and Mike have invested $91,000, $56,000 and $49,000 respectively. Mike has also invested a piece of equipment that is worth $4,000. During the first year of operations in 2020, the firm earned a net income of $299,000. All earnings are to be divided according to the initial capital contribution of each partner. In addition, Amy and Bob withdrew $7,800 and $6,500 cash from the business. On January 1, 2021, a new partner (Helen) was added to the firm. Helen purchased 50% of Amy's investment and 11% of Mike'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 withdrawals, and distribute the income for 2020. 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 Mar 1 Cash 299000 X Equipment 4000 Amy, Capital 91000 Bob, Capital 56000 Mike, Capital A 53000 To record set up of partnership Dec 31 Amy, Withdrawals 7800 Bob, Withdrawals 6500 Cash 14300 To record owner drawing accounts during the year Dec 31 Income Summary 299000 Amy, Capital Bob, Capital Mike, Capital To close income summary account Dec 31 Amy, Capital 7800 Bob, Capital 6500 Amy, Withdrawals 7800 Bob, Withdrawals 6500 To close withdrawals accounts b) Prepare the journal entry to record the admission of Helen. Date Account Title and Explanation Debit Credit Jan 1 Amy, Capital Mike, Capital Helen, Capital To record admission of new partner c) Calculate the ending capital balance of each partner after the addition of Helen on January 1, 2021. Use the negative sign for capital transfers that are subtracted. Amy Bob Mike Helen Beginning Capital Balance 91000 56000 53000 0 Add: Share of net income Subtotal Less: Withdrawals (7800 (6500 ) 0 0 Capital transfer Ending Capital Balance