Question

nMarch 1, 2017, Eckert and Kelley formed a partnership. Eckert contributed $78,000 cash and Kelley contributed land valued at $82,400 and a building valued at $92,400. The partnership also assumed responsibility for Kelley's $68,000 long term note ad any remaining income or oss is to be shared equaly On October 20n 2017 Ecked with onc and Koley withw $21 000 dusling and c gcnti te the reyue arvd exon eot Docm ent 2017, the Income Summary account hed a credit balance of $100,000. Required: Dotorming t artners' shares of income and then prenare iournal antries to close Income Summary and the partners' Withdrewels accounts epariners capital accounts as of December Delermine the balances of .2017 Complete this question by entering your answers in the tabs below. Re 14 ad 18 Reu 1C Re 2 Prepare jaurnal entries to record the partners' initial capital irivestments and their subsequent cash vwithdrawals. View transaction list Journal entry worksheet 2 Record the partners' initial capital investment. Note: Eeter debits before credits Date General Journal Debit Credit Mar 01, 2017 Req 1A and 1B Req 2 Req 1C Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the partners Withdrawals accounts. (Enter all values as positive amounts.) Allocation of Partnership Income Eckert Kelley Total Net Income Salary allowances 0 Balance of income Interest allowances 0 Balance of income Balance allocated equally 0 Balance income 0 Shares of the partners 0 $ 0 Date General Journal Debit Credit Record the entry to close the partners' withdrawals accounts Dec 31, 2017 Record the entry to close the income summary account. Dec 31, 2017 Reg 1A and 1B Req 2 Complete this question by entering your answers in the tabs below. Req 2 Req 1A and 1B Req 1C Determine the balances of the partners' capital accounts as of December 31, 2017. Capital Account Balances Eckert Kelley Initial investment Withdrawals Share of income 0 $ $ Ending balances Req 2 Req 1C

Answer 1

Answer:

Requirements-1(a&b)

prepare journal entries:

Date	Account title and explaination	Debit	credit
March ,01 2017	cash	78000
	Land	62400
	Building	92400
	Long term note payable		68000
	Eckert capital		78000
	Kelly capital		86800

Requirement -1(c)

Allocation of partnership income

	Eckert	Kelly	Total
Net income			100,000
Salary allowance	28500		28500
Balance of income			71500
Interest allowance (78000*11%), (86800*11%)	8580	9548	18128
Balance of income			53372
Balance allocated equally	26686	26686	53372
Balance of income			0
Shares of the partners	63766	36234

Date	Account title	Debit	Credit
Dec 31,2017	Eckert capital	28000
	Kelly capital	21000
	Eckert withdrawal		28000
	Kelly withdrawal		21000
Dec 31,2017	income summary	1,00,000
	Eckert capital		63766
	Kelly capital		36234

Requirements-2

determined the balance of partners capital account

Capital account balance	Eckert	Kelly
Initial investment	78000	86800
Withdrawal	(28000)	(21000)
Shares of income	63766	36234
Ending balance	113766	102043