On March 1, Eckert and Kelley formed a partnership. Eckert contributed $81,000 cash, and Kelley contributed land valued at $64,800 and a building valued at $94,800. The partnership also took Kelley's $71.000 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 $31,000, 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 $29.000 cash and Kelley withdrew $22,000 cash. First year income was $79.000, Required: 18. & 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A and 15 Req 1C Reg 2 Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawals. Date General Journal Debit Credit No 1 March 01 Cash Land 81,000 64,800 Building 94,800 000 Check my w mode: This show what is met infor Competition by the send the parece wenging R work you have comp O 000 MI Che HDB E T Y D F G H K CV B N M MIO WO > L CHHE no WO P Allocation of Partnership Income Net Income Salary allowances Balance of income Interest allowances Balance of income Balance allocated equally Balance of income Shares of the partners Date General Journal Record the entry to close the partners' withdrawals accounts Dec 31 Eckert, Capital Kelley, Capital Eckert, Withdrawals Kelley, Withdrawals Record the entry to close the income summary account. Dec 31 Income summary Eckert, Capital Kelley, Capital Eckert $29,000 8,100 24,520 $61,620 $33,380 Debit Credit 30,000 X 23,000 X 30,000 X 23,000 95,000 61,620 X 33,380 Dunung. me particis ayittu to share it as IUIUWS. LLACH you all annual salary avai interest allowance of 11% of their initial capital investment, and any remaining income or loss is withdrew $29,000 cash and Kelley withdrew $22,000 cash. First year income was $79,000. Required: 1a. & 1b. Prepare journal entries to record the partners' initial capital investments and their sub 1c. Determine the partners' shares of income, and then prepare journal entries to close Income accounts. 2. Determine the balances of the partners' capital accounts as of December 31. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A and 18 Req 1C Req 2 Determine the balances of the partners' capital accounts as of December 31. Capital Account Balances. Eckert Kelley Initial investment Withdrawals Share of income Ending balances S
