Reference no: EM131760298

Question: On March 1. 2015, Eckert and Kelley formed a partnership. Eckert contributed $82, 500 cash and Kelley contributed land valued at $60,000 and a building valued at $100,000. The partnership also assumed responsibility for Kelley's $92, 500 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert is to receive an annual salary allowance of $25,000. are to receive an annual interest allowance of 10% of their beginning-year capital investment and any remaining income or loss is to shared equally. On October 20, 2015, Eckert withdrew $34,000 cash and Kelley withdrew $20,000 cash. After the adjusting and closing entries are made to the revenue and expense accounts at December 31, 2015, the Income Summary account had a credit balance of $90,000. 

Prepare journal entries to record the partners initial investments and their subsequent cash withdrawals.