Problem $12-3$A $($Algo$)$ Allocating partnership income LO P$2$

$[$The following information applies to the questions displayed below.$]$

Ries, Bax, and Thomas invested $$48,000,$$$64,000,$ and $$72,000,$ respectively, in a partnership. During its first calendar year, the firm earned $$369,900.$

Required:

Prepare the entry to close the firm's Income Summary account as of its December $31$ year$-$end and to allocate the $$369,900$ net income under each of the following separate assumptions.

$3.$ The partners agreed to share income and loss by providing annual salary allowances of $$34,000$ to Ries, $$29,000$ to Bax, and $$41,000$ to Thomas; granting $10\%$ interest on the partners' beginning capital investments; and sharing the remainder equally.

Complete this question by entering your answers in the tabs below.

Appropriation of profits

Allocate $$369,900$ net income by providing annual salary allowances of $$34,000$ to Ries, $$29,000$ to Bax, and $$41,000$ to Thomas; granting $10\%$ interest on the partners' beginning capital investments; and sharing the remainder equally.

$$ Appropri$$tion of profits

Required information

Journal entry worksheet

$1$

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 $$34,000$ to Ries, $$29,000$ to Bax, and $$41,000$ to Thomas; granting $10\%$ interest on the partners' beginning capital investments; and sharing the

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit.,Credit$],[\backslash$table$[[$December$],[31]],,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

Prev

$22$

of $22$

Next