Required information [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar year, the firm earned $413,700. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $413,700 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. Complete this question by entering your answers in the tabs below. Appropriation of profits General Journal Allocate $413,700 net income 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. Supporting Calculations Net income Salary allowances Balance after salary allowances Interest allowances Ries Bax Thomas Total 0 0 0 0 Balance after interest and salaries 0 Balance allocated equally $ 0 Balance of income Shares of the partners $ 0 $ 0 $ 0 < Appropriation of profits General Journal > < Prev 5 of 11 Next
Required information [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar year, the firm earned $413,700. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $413,700 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. Complete this question by entering your answers in the tabs below. Appropriation of profits General Journal Allocate $413,700 net income 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. Supporting Calculations Net income Salary allowances Balance after salary allowances Interest allowances Ries Bax Thomas Total 0 0 0 0 Balance after interest and salaries 0 Balance allocated equally $ 0 Balance of income Shares of the partners $ 0 $ 0 $ 0 < Appropriation of profits General Journal > < Prev 5 of 11 Next
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 3PB
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