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In accounting for partnerships, maintaining accurate capital accounts for each partner is extremely important. Provide journal entries in good form for each of the transactions below.

a$.$ On January $1,20$x$1$ Dewey and Ketchum form a law partnership. Each partner contributes $$25,000$ in cash. In addition, Dewey contributes office equipment with a value of $$20,000.$ The partners agree to establish capital account balances based on the value of amounts contributed and to share profits and losses equally. The partnership name is Dewey, Ketchum Partners.

b$.$ During $20$x$1,$ Dewey takes monthly draws $($distributions$)$ of $$2,000$ each month. You can post the total as one entry dated December $31,20$x$1.$ Ketchum does not take any draws.

c$.$ The partnership earns a profit of $$150,000$ in year $20$x$1.$ All revenue and expense accounts have been closed to the Income Summary account. Prepare entries to close the Income Summary account to the Partners$$ Capital accounts.

d$.$ Dewey and Ketchum have accepted a new partner, Howe. Howe will join the partnership on January $01,20$x$2$ and will contribute $$25,000$ in cash. Howe will have a $1/3$ share in the profits and losses. Capital accounts are established based on the value of the amounts contributed. No goodwill will be recognized. Prepare the entry for the receipt of the cash and setting up Howe$$s capital account. The partnership name is now Dewey, Ketchum, and Howe.

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