On January 1, 2024, John Jarell, Andrew Martin, and Susan Montgomery formed a partnership by investing $100,000, $100,000, and $120,000 respectively. During the remainderof the year, John Jarell withdrew cash of $45,000, Andrew Martin withdrew $15,000 and Susan Montgomery withdrew $39,000.In addition, the following schedule shows how net income is allocated.Net income:Salaries:Interest:John Jarell Andrew Martin Susan Montgomery Total100,00021,0005,00026,000Total salary and interest:Remainder to be allocated:Remainder allocated between partners: 8,000Balance of net income to be allocated:Total to be allocated to each partner:Date34,00018,0005,00023,0008,00031,000Page GJ2F Debit Credit21,0006,00027,000b) Calculate the post-closing balance in each partners' capital account.John Jarell, CapitalAndrew Martin, CapitalSusan Montgomery, Capital.8,00035,000a) Prepare the entry to close the income summary account. Enter an appropriate description and the date in the format dd/mmm (ie. 15/Jan).General JournalAccount/Explanation(76,000)24,000(24,000)0100,000

To close income summary account, the balance in the income summary account is reocrded to each…

John Jarell Andrew Martin Susan Montgomery Total 100,000 21,000 5,000 26,000 d interest: be allocated: ocated between partners: 8,000 income to be allocated: cated to each partner: 34,000 18,000 5,000 23,000 8,000 31,000 21,000 6,000 27,000 8,000 35,000 (76,000) 24,000 (24,000) 0 100,000

John Jarell Andrew Martin Susan Montgomery Total 100,000 21,000 5,000 26,000 d interest: be allocated: ocated between partners: 8,000 income to be allocated: cated to each partner: 34,000 18,000 5,000 23,000 8,000 31,000 21,000 6,000 27,000 8,000 35,000 (76,000) 24,000 (24,000) 0 100,000

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 57P

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