Problem 12-3A (Algo) Allocating partnership income LO P2 [The following information applies to the questions displayed below] Ries, Bax, and Thomas invested $56,000, $72,000, and $80,000, respectively, in a partnership. During its first calendar year, the firm earned $430,200. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $430,200 net income under each of the following separate assumptions. Problem 12-3A (Algo) Part 3 3. The partners agreed to share income and loss by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 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 $430,200 net indome by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 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 Balance after interest and salaries Balance allocated equally Balance of income Shares of the partners $ Ries 0 $ Bax 0 S Thomas 0 $ Total General Journal 0 0 0 0 0
Problem 12-3A (Algo) Allocating partnership income LO P2 [The following information applies to the questions displayed below] Ries, Bax, and Thomas invested $56,000, $72,000, and $80,000, respectively, in a partnership. During its first calendar year, the firm earned $430,200. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $430,200 net income under each of the following separate assumptions. Problem 12-3A (Algo) Part 3 3. The partners agreed to share income and loss by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 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 $430,200 net indome by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 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 Balance after interest and salaries Balance allocated equally Balance of income Shares of the partners $ Ries 0 $ Bax 0 S Thomas 0 $ Total General Journal 0 0 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
Problem 12-3A (Algo) Allocating partnership income LO P2
[The following information applies to the questions displayed below]
Ries, Bax, and Thomas invested $56,000, $72,000, and $80,000, respectively, in a partnership. During its first calendar
year, the firm earned $430,200.
Required:
Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the
$430,200 net income under each of the following separate assumptions.
Problem 12-3A (Algo) Part 3
3. The partners agreed to share income and loss by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and
$47,000 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 $430,200 net indome by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 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
Balance after interest and salaries
Balance allocated equally
Balance of income.
Shares of the partners
$
Ries
0 $
Approprimion of
Bax
0 $
Thomas
0
$
Total
0
0
0
0
0
0
General Journal >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F65e18ad6-9753-4e43-bc22-26e667584e7b%2Fc90c271a-1fe2-4c84-a046-0b2494f79b19%2F6m4bshu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 12-3A (Algo) Allocating partnership income LO P2
[The following information applies to the questions displayed below]
Ries, Bax, and Thomas invested $56,000, $72,000, and $80,000, respectively, in a partnership. During its first calendar
year, the firm earned $430,200.
Required:
Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the
$430,200 net income under each of the following separate assumptions.
Problem 12-3A (Algo) Part 3
3. The partners agreed to share income and loss by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and
$47,000 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 $430,200 net indome by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 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
Balance after interest and salaries
Balance allocated equally
Balance of income.
Shares of the partners
$
Ries
0 $
Approprimion of
Bax
0 $
Thomas
0
$
Total
0
0
0
0
0
0
General Journal >
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