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value: 5.00 points Groucho, Harpo, and Chico go into partnership on January 1, 2015. Groucho...

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Accounting

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value: 5.00 points Groucho, Harpo, and Chico go into partnership on January 1, 2015. Groucho contributes $105,000, Harpo $105,000, and Chico $140,000 to a business called Marx Brothers' Partnership. On a monthly basis, each partner is allocated income and is allowed to receive cash from the business in proportion to the capital they provided. Assume that Groucho receives $4,500 cash per month. Required: a-d. Prepare the journal entry for the following transactions: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) (1) The initial investment. (i) The monthly distribution amounts for each of the three partners (ii) The allocation of an annual net income of $126,000. For purposes of this journal entry, assume sales were $189,000 and that all expenses (totaling $63,000) were recorded in a single account called (iv) The closing of the drawings accounts at the end of the year View transaction list View journal entry worksheet No Transaction General Journal Debit Credit Cash 350,000 Groucho Capital Harpo Capital Chico Capital 105,000 105,000 140,000 Groucho Drawings Harpo Drawings Chico Drawings Cash 4,500 Sales Groucho Capital Harpo Capital Chico Capital Operating Expenses

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