On March $1,$ Eckert and Kelley formed a partnership. Eckert contributed $$83,000$ cash, and Kelley contributed land valued at $$66,400$ and a building valued at $$96,400.$ The partnership also took Kelley's $$73,000$ long$-$term note payable associated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $$29,500,$ both get an annual interest allowance of $10\%$ of their initial capital investment, and any remaining income or loss is shared equally. On October $20,$ Eckert withdrew $$30,000$ cash and Kelley withdrew $$23,000$ cash. First year income was $$79,000.$

Required:

$1$a$.$ & $1$b$.$ Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawals.

$1$c$.$ Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the partners' withdrawals accounts.

$2.$ Determine the balances of the partners' capital accounts as of December $31.$

Complete this question by entering your answers in the tabs below.

Journal entry worksheet

$(2)$

Record the partners' initial capital investment.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$March $01,$Cash,,$],[,$Land,,$],[,$Building,,$],[,$Long$-$term note payable,,$],[,$Eckert, Capital,,$],[,$Kelley, Capital,,$],[,,,]]$

Journal entry worksheet

$(1)2$

Record the cash withdrawal of Eckert $($$$29,000)$ and Kelley $($$$22,000).$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$October $20,$Eckert, Withdrawals,,$],[,$Kelley, Withdrawals,,$],[,$Cash,,$],[,,,],[,,,],[,,,]]$

Determine the balances of the partners' capital accounts as of

$\backslash$table$[[$Capital Account Balances,Eckert,Kelley$],[$Initial investment,,$],[$Withdrawals$,,],[$Share of income,,$],[$Ending balances,$$,$$