Question

Help Save & On March 1. Eckert and Kelley formed a partnership. Eckert contributed $74,000 cash, and Kelley contributed land valued at $59.200 and a building valued at $89.200. The partnership also took Kelley's $64,000 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 $30,500 both aet 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 $31.000 cash and Kelley withdrew $24.000 cash. After adjusting and closing entries are made to the revenue and expenser accounts at December 31, the Income Summary account had a credit balance of $98.000, Che Required: 1a. & 1b. Prepare journal entries to record the partners initial capital investments and their subsequent cash withdrawals. ic. 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 1A and 1B Req 1C Prepare journal entries to record the partners' Initial capital investments and their subsequent cash withdrawals. View transaction list Journal entry worksheet Record the partners' Initial capital investment. < Prey 1 of 3 !!! Next >

Answer 1

pate Credit Mased $74,000 Answer: Lazib) Journal entries particulars If Debit cash Ale $ 74,000 Land Ale 59,800 Building the $ 89,200 To Long Term Nolēs payable 3 64000 To Eckert, capital To Kelley, capital 84400 me to record the partner's intial octio Eckert, with drowds ale or $31,000 kelley withdrawls the Dr $24.000 155000 To cash Being to record parter's withdrauti 1-c) calculation of partners Eucoma. Alleation of partners, ducoma Eckert kelley Net Income $98.000 Less salary allowances 5 30 500 $30.500 Balance of Income $67500 Loss Interest Allowances $8,140 $9,284 $17,424 [74,000x117] [84,400x13] Balance of income. $50076 Balance Allocated Equually $25,038 $25,038 359,076 Balance of Income share of partners $63,678 $34,322 Journal entries patel - particulars Debit creatif Decal Eckert, capital Ale $31,000 Kelley, capital sle Dr $24000 TO Eckert withdrawls $ 31,000 1 To kelley with drawls . $24,000 Being record the close of withdrawal accounts Income seemmary ale. $98000 ( 63,678 To Eckerl capital To Kelley, capital $ 34,322 Being closing Income Serninary accould Total Oy

2) calculate the balance of the partuers capital accounts. -- particulars Eckert I kelley I Initial Investments $74,000 $84,400 with drawls 6 31,000) K$24,000) share of Income $63,678 $ 34,328 Ending Balance. $ 106,678 $94722