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Question: question 3 15 scores groucho harpo and chico go into...

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Question 3 (15 scores) Groucho, Harpo, and Chico go into partnership on January 1, 2015. Groucho contributes Harpo $70,000, and Chico $40,000 to a business called Marx Brothers Partnership a monthly basis, each partner is allocated income and is allowed to receive cash from the business in proportion to the capital they prov ided. Assume that Groucho receives $2,700 cash per month. Required: Part Prepare the journal entry for the initial investment. a. Part b. Det c. Prepare the journal entry that would be made in one month for the monthly distribution. ermine the monthly distribution amounts for each of the three partners Part d. Prepare the journal entry for the allocation of an annual net income of $84,000. For purposes of this journal entry, assume Sales Revenue totaled $116,000 and that all expenses, totaling $32,000, were recorded in a single account called Operating Expenses. Part e. Prepare the journal entry to close the Drawings accounts at the end of the year. Part f. Prepare a Statement of Partners Equity (assume no additional investments made)
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