Please create the journals and balance sheet and using correct chart of accounts and labels and amount descriptions. Only answer using what i have provided. On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $20,900 in cash and merchandise inventory valued at $55,950. Wallace invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $60,390. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow: Wallace’s Ledger Agreed-Upon Balance Valuation Accounts Receivable $19,370 $18,480 Allowance for Doubtful Accounts 1,240 1,520 Equipment 83,050 54,330 Accumulated Depreciation 29,920 – Accounts Payable 14,980 14,980 Notes Payable (current) 35,860 35,860 The partnership agreement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $22,800 (Keene) and $30,590 (Wallace), and the remainder equally. Required: 1. Journalize 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.* 3. After adjustments at February 28, 20Y9, the end of the first full year of operations, the revenues were $298,300 and expenses were $209,700, for a net income of $89,600. The drawing accounts have debit balances of $27,870 (Keene) and $30,730 (Wallace). Journalize the entries to close the revenues and expenses and the drawing accounts at February 28, 20Y9.* *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.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter2: Introduction To Financial Statements

Section: Chapter Questions

Problem 3MC: Identify the correct components of the income statement. A. revenues, losses, expenses, and gains B....

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Please create the journals and balance sheet and using correct chart of accounts and labels and amount descriptions. Only answer using what i have provided.

On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $20,900 in cash and merchandise inventory valued at $55,950. Wallace invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $60,390. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow:

	Wallace’s Ledger	Agreed-Upon
Balance	Valuation
Accounts Receivable	$19,370	$18,480
Allowance for Doubtful Accounts	1,240	1,520
Equipment	83,050	54,330
Accumulated Depreciation	29,920	–
Accounts Payable	14,980	14,980
Notes Payable (current)	35,860	35,860

The partnership agreement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $22,800 (Keene) and $30,590 (Wallace), and the remainder equally.

Required:

Journalize the entries on March 1 to record the investments of Keene and Wallacein the partnership accounts.*

Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Keene and Wallace.*

After adjustments at February 28, 20Y9, the end of the first full year of operations, the revenues were $298,300 and expenses were $209,700, for a net income of $89,600. The drawing accounts have debit balances of $27,870 (Keene) and $30,730 (Wallace). Journalize the entries to close the revenues and expenses and the drawing accounts at February 28, 20Y9.*

*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.

**Labels and Amount Descriptions**

**Labels:**
- Current assets
- Current liabilities
- Property, plant, and equipment

**Amount Descriptions:**
- Total assets
- Total current assets
- Total liabilities
- Total liabilities and members' equity
- Total liabilities and partners' equity
- Total members' equity
- Total partners' equity

*Note: This table provides a structured overview of financial terms, useful for understanding basic accounting concepts.*

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