Kara Ries, Tammy Bax, and Joe Thomas invested $46,000, $62,000, and $70,000, respectively, in a partnership. During its first calendar year, the firm earned $413,100.
Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $413,100 net income to the partners under each of the following separate assumptions:

1- Record the entry to close the income summary account assuming the partners have no agreement on the method of sharing income and loss.

Date	General Journal	Debit	Credit
Dec 31

(2) (a)The partners agreed to share income and loss in the ratio of their beginning capital investments. (Do not round intermediate calculations. Round final answers to the nearest whole dollar.)

(b) Record the entry to close the income summary account assuming the partners have agreed to share income and loss in the ratio of their beginning capital investments

Date	General Journal	Debit	Credit
Dec 31

(3) (a) The partners agreed to share income and loss by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and $46,000 to Thomas; granting 10% interest on the partners’ beginning capital investments; and sharing the remainder equally.

(b) Record the entry to close the income summary account assuming the partners have agreed to share income and loss by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and $46,000 to Thomas; granting 10% interest on the partners’ beginning capital investments; and sharing the remainder equally.

Date	General Journal	Debit	Credit
Dec 31

Transcribed Image Text:

Supporting Computations Kara Ries Tammy Bax Joe Thomas Percentage of X Total Equity X X X Income Summary Allocated Income to Capital Supporting Computations Kara Ries Tammy Bax Joe Thomas Percentage of X Total Equity X X X Income Summary Allocated Income to Capital

Answer rating: 100% (QA)

1 Date Dec 31 2a 2b General Journal Income summary Kara Ries capital Supporting Computat... View the full answer