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Saved Groucho, Harpo, and Chico form a partnership on January 1, 2018. Groucho contributes $90.000. Harpo $70 to a business called Marx Brothers' Partnership. On

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Saved Groucho, Harpo, and Chico form a partnership on January 1, 2018. Groucho contributes $90.000. Harpo $70 to a business called Marx Brothers' Partnership. On a monthly basis, each partner is allocated income and is allowed to receive cash from the business in proportion to the capital they provided. Assume that Groucho receives $3,600 cash per month. Required: a-d. Prepare the journal entry for the following transactions: The initial investment (11) The monthly distribution amounts for each of the three partners. (11) The allocation of an annual net income of $84,000. For purposes of this journal entry, assume Sales Revenue totaled $126,000 and that all expenses, totaling $42,000, were recorded in a single account called Operating Expenses. (iv) The closing of the drawings accounts at the end of the year. e. Prepare a Statement of Partners' Equity (assume no additional investments made). Complete this question by entering your answers in the table below. Required A to Required E Prepare a Statement of Partners' Equity (assume no additional investments made). MARX BROTHERS' PARTNERSHIP Statement of Partners' Equity For the Year Ending December 31, 2018 Groucho Harpo Investments, January 1, 2018 90.000 $ 70,000 Add: Net Income 37,800 29,4001 $ 40,000 16,800 Complete this question by entering your answers in the table below. 2.5 points Required A to Required E (8 02:29:29 Prepare a Statement of Partners' Equity (assume no additional investments made). MARX BROTHERS' PARTNERSHIP Statement of Partners' Equity For the Year Ending December 31, 2018 Groucho Harpo Investments, January 1, 2018 70,000 Add: Net Income 37,800 29.400 Totals 127.800 99,400 Less: Drawings 32,400 25,200 $ Partners' Equity, December 31, 2018 95.400 $ 74,200 $ Chico 40,000 16,800 56,800 14,400 42,400 X $

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