Prepare the entry to close the firm Income Summary account

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Question - Ries, Bax, and Thomas invested $56,000, $72,000, and $80,000, respectively, in a partnership. During its first calendar year, the firm earned $421,800.

Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $421,800 net income under each of the following separate assumptions:

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.

Reference no: EM132604388

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