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On March 1, Eckert and Kelley formed a partnership. Eckert contributed $93,000 cash, and Kelley contributed land valued at $74,400 and a building valued at

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On March 1, Eckert and Kelley formed a partnership. Eckert contributed $93,000 cash, and Kelley contributed land valued at $74,400 and a building valued at $104,400. The partnership also took Kelley's $83,000 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 $28,500, both get an annual interest allowance of 9% of their Initial capital investment, and any remaining income or loss is shared equally. On October 20, Eckert withdrew $32,000 cash and Kelley withdrew $25,000 cash. After adjusting and closing entries are made to the revenue and expense accounts at December 31, the Income Summary account had a credit balance of $85,000. Required: 19. & 16. Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawals. 1c. 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. Req 1A and 18 Req 10 Reg 2 Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawals. View transaction list Journal entry worksheet 1 2 > Record the partners' initial capital investment. Note: Enter debits before credits. General Journal Debit Credit Date Mar 01 Record entry Clear entry View general journal Reg 1A and 1B Req 1C Reg 2 Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the pa withdrawals accounts. (Enter all allowances as positive values. Enter losses as negative values.) Allocation of Partnership Income Eckert Kelley Total 0 0 Net Income Salary allowances Balance of income Interest allowances Balance of income Balance allocated equally Balance of income Shares of the partners 0 $ 0 $ 0 0 Debit Credit Dato General Journal Record the entry to close the partners' withdrawals accounts. Dec 31 Record the entry to close the income summary account. Dec 31 Reg 1A and 1B Req 1C Req 2 Determine the balances of the partners' capital accounts as of Capital Account Balances Eckert Kelley Initial investment Withdrawals Share of income Ending balances $ 0 $ 0

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