Tognazzini Company had a $15,000 loss for the year ended October 31, 2014. The company is a

Question:

Tognazzini Company had a $15,000 loss for the year ended October 31, 2014. The company is a partnership owned by Lilia and Terry Tognazzini. Salary allowances for the partners are Lilia $25,000 and Terry $16,000. Interest allowances are Lilia $5,000 and Terry $9,000. The remainder is shared 75% by Lilia and 25% by Terry.

(a) Calculate the loss to be allocated to each partner.

(b) Prepare a journal entry to close the income summary account.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...