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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

ctions
abels and Amount Descriptions
Labels
Amount Descriptions
Current assets
Total assets
Current liabilities
Total current assets
Property, plant and equipment Total liabilities
Total liabilities and members' equity
Total liabilities and partners equity
Total members equity
Total partnerS equily

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