Question: Wallace and Simpson formed a partnership. Wallace contributed $ 9 0 , 0 0 0 , and Simpson contributed $ 7 0 , 0 0

Wallace and Simpson formed a partnership. Wallace contributed $90,000, and Simpson contributed $70,000. Their partnership agreement calls for the income (loss) division to be based on the ratio of capital investments. The partnership had income of $160,000 in its first year of operation. When the Income Summary is closed, the journal entry to allocate partner income is: (Do not round intermediate calculations.)
 Wallace and Simpson formed a partnership. Wallace contributed $90,000, and Simpson

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