Can I please get help with this question?(6.5) Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar year, the firm earned $416,100.Required:Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $416,100 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and $46,000 to Thomas; granting 10% interest on the partners’ beginning capital investments; and sharing the remainder equally. Appropriationof profitsGeneralJournalAllocate $416,100 net income by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and $46Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equallySupporting CalculationsNet incomeSalary allowancesBalance after salary allowancesInterest allowancesBalance after interest and salariesBalance allocated equallyBalance of incomeShares of the partners$Ries0 $Bax< Appropriation of profits0Thomas0$Total000000General Journal > Appropriationof profitsPrepare the entry to close the firm's Income Summary account as of its December 31 year-end.View transaction listGeneralJournalJournal entry worksheet1Record the entry to close the income summary account assuming the partnershave agreed to share income and loss by providing annual salary allowances of$39,000 to Ries, $34,000 to Bax, and $46,000 to Thomas; granting 10%interest on the partners' beginning capital investments; and sharing theremainder equally.Note: Enter debits before credits.DateDecember 31General JournalDebitCredit

In a partnership, the appropriation of profit involves allocating the earnings among partners…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required:

Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $416,100 net income under each of the following separate assumptions.

3. The partners agreed to share income and loss by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and $46,000 to Thomas; granting 10% interest on the partners’ beginning capital investments; and sharing the remainder equally.

Appropriation
of profits
General
Journal
Allocate $416,100 net income by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and $46
Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally
Supporting Calculations
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
$
Ries
0 $
Bax
< Appropriation of profits
0
Thomas
0
$
Total
0
0
0
0
0
0
General Journal >

Appropriation
of profits
Prepare the entry to close the firm's Income Summary account as of its December 31 year-end.
View transaction list
General
Journal
Journal entry worksheet
1
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
$39,000 to Ries, $34,000 to Bax, and $46,000 to Thomas; granting 10%
interest on the partners' beginning capital investments; and sharing the
remainder equally.
Note: Enter debits before credits.
Date
December 31
General Journal
Debit
Credit

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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