K. Clarkson and M. Carlson worked for a large tech company designing web catalogs for the company.

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Question:

K. Clarkson and M. Carlson worked for a large tech company designing web catalogs for the company. K. Clarkson designed the web layout page
and did all of the codings. M. Carlson did the content of the page and the editing. They decided to start their own company to provide those services
to clients. They started a company on 5/1/21 as a partnership. They had their attorney draw up a partnership agreement, got a business license, and deposited money into the partnership banking account on that date. K. Clarkson invested $35,000 in cash into the partnership and M. Carlson
invested $30,000 in cash into the partnership. M. Carlson also gave ownership of 5 computers, software, one printer, and a Wi-Fi system to the
partnership which had a market value of $6,000.

Required
a. Make the required journal entries to record the activities above

The partnership had revenues of $330,000 and expenses of $140,000 for the calendar year ending 12/31/21. The partnership agreement required
that each partner receives a $4,000 per month salary. Any remaining profits were to be distributed to each partner as a percentage of their capital
accounts at the end of the year after salaries had been deducted The salary had been withdrawn in cash at the end of each month since the
formation of the partnership and the appropriate accounting entries were made in the accounting system. However, the accounting system is closed
at the end of the calendar year therefore the Drawing Accounts for each partner has not been closed and the Capital Accounts do not reflect the
correct balance at the end of the year.

K.
Clarkson M.
Carlson
Capital Capital Total
Capital Account Balance 5/1/21:
$
$35,000 $ 36,000 $ 71,000
Less: Salary (Drawing) (32,000) ($ 32,000) (64,000)
Captital 12/31/21 $3,000 $ 4,000 $ 7,000
% Of owners capital account: 43% 57% 100%
Total Share of the Profit for each
partner
$81,700 $108,300 $ 190,000
New balance in Capital accounts
9/30/21: $ 116,700 $144,300 $ 261,000

Required

Use The information in the worksheet to Make the closing journal entry on 12/31/21 to recognize the profit of the company, the distribution of it to the partners and the closing in of the Drawing accounts.