Exercise 12-7 Journalizing partnership transactions LO P2 On March 1, Eckert and Kelley formed a partnership. Eckert contributed $81,000 cash and Kelley contributed land valued at $64,800 and a building valued at $94.800. The partnership also took Kelley's $71,000 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 $30,500, 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 $32,000 cash and Kelley withdrew $25,000 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 $91,000. 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' withdrawal- accounts. 2. Determine the balances of the partners' capital accounts as of December 31 Complete this question by entering your answers in the tabs below. Reg 1A and 1B Reg 1C Reg 2 Reg 1A and 1B Req 10 Req 2 Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the p withdrawals accounts. (Enter all allowances as positive values. Enter losses as negative values.) Allocation of Partnership Income Eckert Kelley Total $ 31,500 0 Net Income Salary allowances Balance of income Interest allowances Balance of income Balance allocated equally $ 76,000 31,500 44,500 115,200 24,340 24,340 9,600 105,600 12.170 12,170 Balance of income $ 0 Shares of the partners $ 53,270 $ 117.770 Date General Journal Debit Credit Record the entry to close the partners withdrawals accounts. Swed Shares of the partners $ 53,270 $ 117,770 Debit Credit Date General Journal Record the entry to close the partners' withdrawals accounts. Dec 31 30,000 23,000 30,000 23,000 Record the entry to close the income summary account. Dec 31 Complete this question by entering your answers in the tabs below. Req 1A and 1B Req 1C Reg 2 Determine the balances of the partners' capital accounts as of December 31. Eckert Kelley Capital Account Balances Initial investment Withdrawals Share of income Ending balances $ 0 $ 0