Tognazzini Company had a $15,300 loss for the year ended October 31, 2017. The company is a

Question:

Tognazzini Company had a $15,300 loss for the year ended October 31, 2017. The company is a owned by Lilia and Terry Tognazzini. Salary allowances for the partners are Lilia $24,900 and Terry $15,000. Interest allowances are Lilia $5,300 and Terry $9,300. 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...