Ries, Bax, and Thomas invested $32,000, $48,000, and $56,000, respectively. In a partnership. During its first...

Transcribed Image Text:

Ries, Bax, and Thomas invested $32,000, $48,000, and $56,000, respectively. In a partnership. During its first calendar year, the firm earned $339,000. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $339,000 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $32,000 to Ries, $27,000 to Bax, and $39,000 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 General Journal Allocate $339,000 net income by providing annual salary allowances of $32,000 to Ries, $27,000 to Bax, and $39,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Supporting Calculations Net income Salary allowances Balance after salary allowances Interest allowances Balance after interest and salaries Balance allocated equally Balance of income Shares of the partners Ries Bax Thomas Total Ries, Bax, and Thomas invested $32,000, $48,000, and $56,000, respectively. In a partnership. During its first calendar year, the firm earned $339,000. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $339,000 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $32,000 to Ries, $27,000 to Bax, and $39,000 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 General Journal Allocate $339,000 net income by providing annual salary allowances of $32,000 to Ries, $27,000 to Bax, and $39,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Supporting Calculations Net income Salary allowances Balance after salary allowances Interest allowances Balance after interest and salaries Balance allocated equally Balance of income Shares of the partners Ries Bax Thomas Total

Answer rating: 100% (QA)

Answer To allocate the net income of 339000 according to the given assumptions we can follow these s... View the full answer