Question

On March 1, Eckert and Kelley formed a partnership. Eckert contributed $83,000 cash, and Kelley contributed land valued at $66,400 and a building valued at $96,400. The partnership also took Kelley’s $73,000 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 $29,000, both get an annual interest allowance of 10% 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 had a credit balance of $99,000.

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

Determine the partners’ shares of income, and then prepare journal entries to close Income Summary and the partners' withdrawals accounts. (Enter all allowances as positive values. Enter losses as negative values.

Allocation of Partnership Income Eckert Kelley Total Net Income $99,000 Salary allowances $29,000 $0 29,000 Balance of income 70,000 Interest allowances 8,300 8,980 17,280 Balance of income 52,720 Balance allocated equally 26,360 26,360 52,720 Balance of income $0 Shares of the partners $63,660 $35,340 Date General Journal Debit Credit Record the entry to close the partners' withdrawals accounts. Dec 31 Eckert, Capital 30,000 Kelley, Capital 23,000 Eckert, Withdrawals 30,000 Kelley, Withdrawals 23,000 Record the entry to close the income summary account. Dec 31 Income summary 99,000 Eckert, Capital Kelley, Capital

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 $0 $0

**I believe I only need help with the last two parts that are in bold font**

Answer 1

Credit 12 Debit 83,000 66,400 96,400 Date Account title & explanation 1-Mar Cash Land Building Long term note payable Eckert, Capital Kelley, Capital (66400+96400-73000) (To record initial capital investment) 73,000 83,000 89,800 30,000 23,000 20-Oct Eckert, Withdrawals Kelley, Withdrawals Cash (To record withdrawls made by partners) 53,000 30,000 23,000 31-Dec Eckert, Capital Kelley, Capital Eckert, Withdrawals Kelley, Withdrawals (To record transfer of withdrawls to capital to close) 30,000 23,000 99,000 31-Dec Income Summary Eckert, Capital Kelley, Capital (To close Income summary) 63,660 35,340

Capital account balances Initial investment Withdrawals Share of income* Ending balances Eckert 83,000 (30,000) 63,660 116,660 Kelley 89,800 (23,000) 35,340 102,140 Eckert 29,000 Kelley Total 99,000 29,000 70,000 8,980 17,280 52,720 26,360' 52,720 Net income Salary allowance: Balance of income Interest allowances: Balance of income Balance allocated equally Balance of income Shares of the partners 8,300 26,360 63,660 35,340