Jenkins, Willis, and Trent invested $$248,000,$ $$434,000,$ and $$558,000,$ respectively, in a partnership. During its first year, the firm recorded profit of $$639,000.$

Required:

Prepare entries to close the firm$$s Income Summary account as of December $31$ and to allocate the profit to the partners under each of the following assumptions:

a$.$ The partners did not produce any special agreement on the method of distributing profits. Record to close income summary account. b$.$The partners agreed to share profit and losses in the ratio of their beginning investments. $1$Record to close income summary account. c$.$ The partners agreed to share profit by providing annual salary allowances of $$122,000$ to Jenkins, $$132,000$ to Willis, and $$67,000$ to Trent; allowing $15\%$ interest on the partners$$ beginning investments; and sharing the remainder equally. Record to close income summary account.

Answer rating: 100% (QA)

a The partners did not produce any special agreement on the method of distributing profits Reco... View the full answer