Ries, Bax, and Thomas invested $28,000, $44,000, and $52,000, respectively, in a partnership. During its first calendar year, the firm earned $326,100. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $326,100 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $31,000 to Ries, $26,000 to Bax, and $38,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally.

FINANCIAL ACCOUNTING
10th Edition
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Chapter1: Financial Statements And Business Decisions
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Prepare the entry to close the firm's Income Summary account as of its December 31 year-end.
View transaction list
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
$31,000 to Ries, $26,000 to Bax, and $38,000 to Thomas; granting 10%
interest on the partners' beginning capital investments; and sharing the
Note: Enter debits before credits.
Date
December
31
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
Transcribed Image Text:Prepare the entry to close the firm's Income Summary account as of its December 31 year-end. View transaction list 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 $31,000 to Ries, $26,000 to Bax, and $38,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry Debit Credit View general journal
!
Required information
[The following information applies to the questions displayed below.]
Ries, Bax, and Thomas invested $28,000, $44,000, and $52,000, respectively, in a partnership. During its first calendar
year, the firm earned $326,100.
Required:
Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the
$326,100 net income under each of the following separate assumptions.
3. The partners agreed to share income and loss by providing annual salary allowances of $31,000 to Ries, $26,000 to Bax, and
$38,000 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.
Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $28,000, $44,000, and $52,000, respectively, in a partnership. During its first calendar year, the firm earned $326,100. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $326,100 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $31,000 to Ries, $26,000 to Bax, and $38,000 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.
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