On March 1, Eckert and Kelley formed a partnership. Eckert contributed $98,000 cash, and Kelley contributed land valued at $78,400 and a building valued at $108,400. The partnership also took Kelley's $88,000 long-term note payable associated with the land and building. The partners agreed to share income as follows Eckert gets on annual salary allowance of $28,500, both get an annual interest allowance of 11% 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. After adjusting and closing entries are made to the revenue and expense accounts at December 31, the Income Summary account hed a credit balance of $95.000 Required: 1a. & 1b. 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. Reg LA and 1B Regac Reg 2 Prepare journal entries to record the partners initial capital investments and their subsequent cash withdrawals. View transaction list Journal entry worksheet 2. Record the partners' Initial capital investment. inter debits before credits On March 1. Eckert and Kelley formed a partnership. Eckert contributed $98 000 cash, and Kelley contrib and a building valued at $108,400. The partnership also took Kelley's $88,000 long-term note payable a building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $28 Interest allowance of 11% of their initial capital investment, and any remaining income or loss is shared e withdrew $30,000 cash and Kelley withdrew $23,000 cash. After adjusting and closing entries are made accounts at December 31, the Income Summary account had a credit balance of $95.000 Required: 1a. & 1b. Prepare journal entries to record the partners' Initial capital investments and their subsequent c 1c. Determine the partners' shares of income, and then prepare journal entries to close Income Summary 2. Determine the balances of the partners' capital accounts as of December 31 accounts Complete this question by entering your answers in the tabs below. Reg 1A and 1B Req1c Reg 2 Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawa View transaction list Journal entry worksheet 1 2 Record the cash withdrawal of Eckert ($30,000) and Kelley ($23,000) Note: Enter debits before credits. Type here to search o CE Req 1A and 1B Reg 1c Reg 2 Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the part withdrawals accounts. (Enter all allowances as positive values. Enter losses as negative values.) Allocation of Partnership Income Eckert Kelley Total Net Income Salary allowances Balance of income Interest allowances Balance of income Balance allocated equally Balance of income Shares of the partners Debit Credit Date General Journal Record the entry to close the partners withdrawals accounts, Dec 31 Record the entry to close the income summary account Dec 31 BE Type here to search 1a. & 1b. Prepare journal entries to record the partners initial capital investments and 1c. Determine the partners' shares of income, and then prepare journal entries to close 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 1B Req 1C Reg 2 Determine the balances of the partners' capital accounts as of December 31. Eckert Kelley Capital Account Balances Initial investment Withdrawals Share of income Ending balances
