Exercise 12-7(Algo) Journalizing partnership transactions LO P2 On March 1, Eckert and Kelley...
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Exercise Algo Journalizing partnership transactions LO P
On March Eckert and Kelley formed a partnership. Eckert contributed $ cash, and Kelley contributed land valued at $ and a bullding valued at $ The partnership also took Kelley's $ longterm note payable assoclated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $ both get an annual Interest allowance of of their initial capital investment, and any remaining income or loss is shared equally. On October Eckert withdrew $ cash and Kelley withdrew $ cash. First year Income was $
Required:
& b Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawals.
c Determine the partners' shares of Income, and then prepare Journal entries to close Income Summary and the partners' withdrawals accounts.
Determine the balances of the partners' capital accounts as of December
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