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Kara Ries, Tammy Bax, and Joe Thomas invested $42,000, $58,000, and $66,000, respectively, in a partnership. During its first calendar year, the firm earned $418,200. Prepare the entry to close the firms Income Summary account as of its December 31 year-end and to allocate the $418,200 net income to the partners under each of the following separate assumptions:

The partners agreed to share income and loss in the ratio of their beginning capital investments. (Do not round intermediate calculations. Round final answers to the nearest whole dollar.)

	Supporting Percentage of x Income Allocated Income Computations Total Equity Summary to Capital Kara Ries x Tammy Bax x Joe Thomas x

Journal entry worksheet

Record the entry to close the income summary account assuming the partners have agreed to share income and loss in the ratio of their beginning capital investments

Note: Enter debits before credits.

Date General Journal Debit Credit Dec 31 The partners agreed to share income and loss by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 to Thomas; granting 10% interest on the partners beginning capital investments; and sharing the remainder equally. Supporting Calculations Ries Bax Thomas Total 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

Journal entry worksheet

Record the entry to close the income summary account assuming the partners have agreed to share income and loss by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 to Thomas; granting 10% interest on the partners beginning capital investments; and sharing the remainder equally.

Note: Enter debits before credits.

	Date General Journal Debit Credit Dec 31

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