On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $20,900 in cash and merchandise inventory valued at $55,950. Wallace invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $60,390. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow:

10 of them

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Wallace's Ledger Balance Agreed-Upon Valuation Accounts Receivable $19,370 $18.480 Allowance for Doubtful Accounts 1,240 1,520 83,050 Equipment Accumulated Depreciation 54,330 29.920 Accounts Payable 14.980 14.980 Notes Payable (current) 35.860 35.860 The partnership agreement includes the following provisions regarding the division of net income interest on original investments at 10%, salary allowances of $22.800 (Keene) and 530,590 (Wallace), and the remainder equally. The partnership agreement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $22,800 (Keene) and $30,590 (Wallace), and the remainder equally. Required: 1. Journalize the entries on March 1 to record the investments of Keene and Wallacein the partnership accounts. 2. Prepare a balance sheet as of March 1, 2018, the date of formation of the partnership of Keene and Wallace. 3. After adjustments at February 28, 2099, the end of the first full year of operations, the revenues were $298,300 and expenses were $208.700, for a net income of $89,600. The drawing accounts have debit balances of $27,870 (Keene) and $30,730 (Wallace). Journalizethe entries to close the revenues and expenses and the drawing accounts at February 28, 2049.* *Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries an of Accounts CHART OF ACCOUNTS Keene and Wallace General Ledger ASSETS REVENUE 110 Cash 410 Revenues 112 Accounts Receivable 113 Allowance for Doubtful Accounts EXPENSES 116 Merchandise Inventory 510 Expenses 117 Office Supplies 524 Advertising Expense ctions Chart of Accounts 119 Prepaid Insurance 522 Depreciation Expense-Equipment 120 Land 529 Selling Expenses 123 Equipment 533 Insurance Expense 124 Accumulated Depreciation Equipment 534 Office Supplies Expense 536 Credit Card Expense LIABILITIES 537 Cash Short and Over 210 Accounts Payable 538 Bad Debt Expense 211 Notes Payable 539 Miscellaneous Excense 22 Interest Payable 213 Sales Tax Payable EQUITY unt Descriptions structions Chart of Accounts ZAECOunis Payable 338 Bao De Expense 211 Notes Payable 539 Miscellaneous Expense 212 Interest Payable 213 Sales Tax Payable EQUITY 310 Renee Wallace, Capital 311 Renee Wallace Drawing 312 Eric Keene. Capital 313 Enc Keene. Draving 1. Journalize the entries on March 1 to record the investments of Keene and Wallacein the partnership accounts. Refer to the Chart of Accounts for exact wording titles JOURNAL ACCOUNTING EQUATI POST. REF CREDIT DATE DESCRIPTION DEBIT ASSETS LIABILITIES 3. After adjustments at February 28, 2019, the end of the first full year of operations, the revenues were $298,300 and expenses were $208.700, for a net income $89,600. The drawing accounts have debit balances of $27,870 (Keene) and $30,730 (Wallace). Journalizethe entries to close the revenues and expenses and the accounts at February 28, 2019. Refer to the Chart of Accounts for exact wording of account titles. If required, round your answers to two decimal places. JOURNAL ACCOUNTING EQUATI POST. REF DEBIT CREDIT ASSETS LIABILITIES DATE DESCRIPTION Closing Entries 1 Chart of Accounts Journal mal Labels and Amount Descriptions Labels Amount Descriptions Current assets Total assets Current liabilities Total current assets Property, plant and equipment Total liabilities Total liabilities and members equity Total liabilities and partners equity Total members equity Total partners equity Entries and balance sheet for partnership Chart of Accounts Journal Labels and Amount Descriptions Balance Sheet 2. Prepare a balance sheet as of March 1, 2018, the date of formation of the partnership of Keene and Wallace. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter current assets in order of liquidity. "Less", "Add", or colons () will automatically appear if required. Keene and Wallace Balance Sheet March 1, 2018 Assets 2 (Label)