K. Ison (beginning capital, $50,000) and I. McCoy (beginning capital $80,000) are partners. During 2017, the partnership

Question:

K. Ison (beginning capital, $50,000) and I. McCoy (beginning capital $80,000) are partners. During 2017, the reported profit of $60,000, and Ison made drawings of $15,000 while McCoy made drawings of $20,000.
Instructions
(a) Assume the agreement calls for profit to be divided 55% to Ison and 45% to McCoy. Prepare the journal entry to close the Income Summary account.
(b) Assume the agreement calls for profit to be divided with a salary of $30,000 to K. Is on and $20,000 to I. McCoy, with the remainder divided 55% to Ison and 45% to McCoy. Prepare the journal entry to close the Income Summary account.
(c) Assume the agreement calls for profit to be divided with a salary of $40,000 to K. Is on and $30,000 to I. McCoy, interest of 10% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record close the Income Summary account.
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...