Exercise $12-7($Algo$)$ Journalizing partnership transactions LO P$2$

On March $1,$ Eckert and Kelley formed a partnership. Eckert contributed $$96,000$ cash, and Kelley contributed land valued at $$76,800$ and a building valued at $$106,800.$ The partnership also took Kelley's $$86,000$ 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 $$31,500,$ both get an annual interest allowance of $9\%$ of their initial capital investment, and any remaining income or loss is shared equally. On October $20,$ Eckert withdrew $$29,000$ cash and Kelley withdrew $$22,000$ cash. First year income was $$83,000.$

Required:

$10.$ & $1$b$.$ 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 $31.$