Kara Ries, Tammy Bax, and Joe Thomas invested $50,000, $66,000, and $74,000, respectively, in a partnership. During its first calendar year, the firm earned $346,200.

Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $346,200 net income to the partners under each of the following separate assumptions:

Problem 12-3A Part 1

Required:
(1) The partners have no agreement on the method of sharing income and loss.

Problem 12-3A Part 2

(2) 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.)

Answer rating: 100% (QA)

Solution Problem 123A This problem requires us to close the Income Summary account and allocate net ... View the full answer