CengageNOWv@ OnlineChapter 12.Picture of Question included. . PR.12.01.BLANKSHEET.ALGO (Algorithmic)Entries and Balance Sheet for PartnershipInstructionsOn March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $20,960 in cash and merchandise inventory valued at $56,060. Wallace invests certain business assets atvaluations agreed upon, transfers business liablities, and contributes sufficient cash to bring her total capital to $59,510. Details regarding the book values of the business assets and liabilities, and the agrvaluations, followWallace's LedgerAgreed-UponBalanceValuationAccounts Receivable$18,460$17,560Allowance for Doubtful Accounts1,5701,810Equipment83,16054,420Accumulated DepreciationAccounts Payable15.330Notes Payable (current)36,10036,100The partnershio agrement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $22,140 (Keene) and $30,840 (Wallace), anıremainder equally.Required:1. Joumalize the entries on March 1 to record the investments of Keene and Wallacein the partnership accounts."2. Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Keene and Wallace. Be sure to complete thestatement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answerchoices for text entries. Enter current assets in order of liquidity. "Less", "Add", or colons (:) will automatically appear if required. Enter allamounts as positive numbers.3. Aftor adjustmonts at February 28, 20Y9, the end of the first ful yoar of operations, the revonues wore $290, 170 and expenses wore $200, 100,a net income of $90,070. The drawing accounts have debit balances of $28,170 (Koene) and $30,200 (Wallace). Journalizethe entries toclose the revenues and expenses and the drawing accounts at February 28, 20Y9."Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every lineon a journal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered.Journal1. Journalize the entries on March 1 to record the investments of Keene and Wallacein the partnership accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW jounals duse lines for joumal explanations. Every line on a joumal page is used for debit or credit entrios. CNOW journals will automadically indent a credit entry when a credit amount is enfered.PAGE 5JOURNALACCOUNTING EQUATIONDATEDESCRIPTIONPOST, REF.DENITCREDITASSETSLIABLITIESEQUITY24103. After adjustments at February 28, 20Y9, the end of the first full year of operations, the revenues were $290, 170 and expenses were $200, 100, for a net income of $90,070. The drawing accounts havedbalances of $28, 170 (Keene) and $30,200 (Walace). Journalizethe entries to close the revenues and expenses and the drawing accounts at February 28, 20Y9. Refer to the chart of accounts for the exacwording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entrya credit amount is entered. If required, round your answers to two decimal places.PAGE 20JOURNALACCOUNTING EQUATIONDATEDESCRIPTIONPOST. BEEDENITCREDITASSETSLIANLITIESCOUITYClosing EntriesBalance Sheet2. Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Koene and Wallace. Be sure to complete the statement heading. Refor to the Chart of Accounts and the list of Land Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter current assets in order of liquidity. "Less", "Add", or colons (:) will automatically appear if required. Enteamounts as positive numbers.Keene and WallaceBalance Sheet(Label)Assets2 (Label)5* Label)1011Liabilities12 (Label)1516Partners' Equity17181920

Entries and Balance Sheet for Partnership Instructions On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $20,960 in cash and merchandise inventory valued at $56,060. Wallace invests certain business assets at valuations agreed upon, transfers business liabities, and contributes sufficient cash to bring her total capital to $59,510. Details regarding the book values of the business assets and labilities, and the age valuations, follow: Wallace's Ledger Agreed-Upon Balance Valuation Accounts Receivable $18,460 $17,560 Allowance for Doubtful Accounts 1,570 1,810 Equipment 83, 160 54,420 Accumulated Depreciation 29,820 Accounts Payable 15,330 15,330 Notes Payable (current) 36,100 36,100 The partnecsbic.aoreement includes the following provisions regarding the division of net income: Interest on original investments at 10%, salary allowances of $22,140 (Keene) and $30,840 (Wallace), an remainder equally. Required: 1. Joumalize the entries on March 1 to record the investments of Koene and Wallacein the partnership accounts." 2. Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Keene and Wallace. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter current assets in order of liquidity. "Less", "Add", or colons () will aufomatically appear if required. Enter all amounts as positive numbers. 3. Aftor adjustmonts at Fobruary 28, 20Y9, the end of the first ful year of operations, the rovenues wore $290,170 and exponses wore $200, 100, for a net income of $90,070. The drawing accounts have debit balances of $28,170 (Koene) and $30,200 (Wallace). Journalizethe entries to close the revenues and expenses and the drawing accounts at February 28, 20Y9. *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for jourmal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered.