90.2K

Verified Solution

Link Copied!

Required information [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $52,000,$68,000, and $76,000, respectively, in a partnership. During its first calendar year, the firm earned $336,900. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $336,900 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $30,000 to Ries, $25,000 to Bax and $37,000 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. Allocate $336,900 net income by providing annual salary allowances of $30,000 to Ries, $25,000 to Bax, and $37,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. repare the entry to close the firm's Income Summary account as of its December 31 year-end. 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 $30,000 to Ries, $25,000 to Bax, and $37,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the Note: Enter debits before credits

Answer & Explanation Solved by verified expert

See Answer