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

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Ries, Bax, and Thomas invested $$26,000,$ $$42,000,$ and $$50,000,$ respectively, in a partnership. During its first calendar year, the firm earned $$367,500.$

Required:

Prepare the entry to close the firm$$s Income Summary account as of its December $31$ year$-$end and to allocate the $$367,500$ net income under each of the following separate assumptions.

Problem $12-3$A $($Algo$)$ Part $3$

The partners agreed to share income and loss by providing annual salary allowances of $$36,000$ to Ries, $$31,000$ to Bax, and

$$43,000$ to Thomas; granting $10\%$ interest on the partners' beginning capital investments; and sharing the remainder equally.

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Prepare the entry to close the firm's Income Summary account as of its December $31$ year$-$end.