Question 3 (15 scores) Groucho, Harpo, and Chico go into partnership on January 1,2015. Groucho contributes...

Question 3 (15 scores) Groucho, Harpo, and Chico go into partnership on January 1,2015. Groucho contributes $90,000, Harpo $70,000, and Chico $40,000 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 $2,700 cash per month. Required: Part a. Prepare the journal entry for the initial investment. Part b. Determine the monthly distribution amounts for each of the three partners. Part c. Prepare the journal entry that would be made in one month for the monthly distribution. 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). Question 4 (40 scores) Condensed financial data of Monopoly Corporation appear below: Monopoly Corporation Comparative Balance Sheet December 31 Prior Year Year Assets $28,000 32,000 70,000 2,000 200,000 $44,000 Cash Accounts receivable Inventories Prepaid rent Property, plant, and equipment 2,500 224,000 (55,000)(40,000)