Save & Ex Help Saved aded Chec Exercise 12-7 Journalizing partnership transactions LO P2 On March 1, 2017, Ecket and Kelley formed a partnership. Eckert contributed $80,000 cash and Kelley contributed land valued at $64,000 and a building valued at $94,000. The partnership also assumed responsiblity for Kelley's $70,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert is to receive an annual salary allowance of $31.500, both are to receive an annual interest allowance of 10% of their beginning year capital investment, and any remaining income or loss is to be shared equally. On October 20, 2017, Eckert withdrew $28,000 cash and Kelley withdrew $21,000 cash. After the adjusting and closing entries are made to the revenue and expense accounts at December 31, 2017, the Income Summary account had a credit balance of $89,000. Required: 1a.&1b. Prepare journal entries to record the partners' initial 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, 2017 Complete this question by entering your answers in the tabs below. Req 2 Req 1C Req 1A and 18 Determine the partners' shares of income, and then prepare journal entries to close Income Summary and thep Withdrawals accounts. (Enter all values as positive amounts.) Allocation of Partnership Income Total Eckert Kelley S 89,000 Net Income Salary allowances Balance of income Interest allowances Balance of income Balance allocated equally Balance of income Shares of the partners S 31,500 31,500 $31,500 o 0 l Date General Journal Debit Credit Record the entry to close the partners' withdrawals accounts. Dec 31, 2017 Credit Debit General Journal Date Record the entry to close the partners' withdrawals accounts. Dec 31, 2017 Record the entry to close the income summary account. Dec 31, 2017 Req 1A and 1B Req 2 ) Pre 6 of 8 Next 1c. Determine the partners' shares of income, and then prepare journal entries to close Inc Withdrawals accounts. 2. Determine the balances of the partners' capital accounts as of December 31, 2017. Complete this question by entering your answers in the tabs below. Req 1A and 18 Req 1CReq 2 Determine the balances of the partners' capital accounts as of December 31, 2017. Capital Account Balances Initial investment Withdrawals Share of income Ending balances es S 80,000 S 80,000 $ K Req 10 Save & Ex Help Saved aded Chec Exercise 12-7 Journalizing partnership transactions LO P2 On March 1, 2017, Ecket and Kelley formed a partnership. Eckert contributed $80,000 cash and Kelley contributed land valued at $64,000 and a building valued at $94,000. The partnership also assumed responsiblity for Kelley's $70,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert is to receive an annual salary allowance of $31.500, both are to receive an annual interest allowance of 10% of their beginning year capital investment, and any remaining income or loss is to be shared equally. On October 20, 2017, Eckert withdrew $28,000 cash and Kelley withdrew $21,000 cash. After the adjusting and closing entries are made to the revenue and expense accounts at December 31, 2017, the Income Summary account had a credit balance of $89,000. Required: 1a.&1b. Prepare journal entries to record the partners' initial 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, 2017 Complete this question by entering your answers in the tabs below. Req 2 Req 1C Req 1A and 18 Determine the partners' shares of income, and then prepare journal entries to close Income Summary and thep Withdrawals accounts. (Enter all values as positive amounts.) Allocation of Partnership Income Total Eckert Kelley S 89,000 Net Income Salary allowances Balance of income Interest allowances Balance of income Balance allocated equally Balance of income Shares of the partners S 31,500 31,500 $31,500 o 0 l Date General Journal Debit Credit Record the entry to close the partners' withdrawals accounts. Dec 31, 2017 Credit Debit General Journal Date Record the entry to close the partners' withdrawals accounts. Dec 31, 2017 Record the entry to close the income summary account. Dec 31, 2017 Req 1A and 1B Req 2 ) Pre 6 of 8 Next 1c. Determine the partners' shares of income, and then prepare journal entries to close Inc Withdrawals accounts. 2. Determine the balances of the partners' capital accounts as of December 31, 2017. Complete this question by entering your answers in the tabs below. Req 1A and 18 Req 1CReq 2 Determine the balances of the partners' capital accounts as of December 31, 2017. Capital Account Balances Initial investment Withdrawals Share of income Ending balances es S 80,000 S 80,000 $ K Req 10