Ries, Bax, and Thomas invested $54,000, $70,000, and $78,000, respectively, in a partnership. During its first calendar year, the firm earned $385,200. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $385,200 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $35,000 to Ries, $30,000 to Bax, and $42,000 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 $385,200 net income by providing annual salary allowances of $35,000 to Ries, $30,000 to Bax, and $42,000 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 Ries Bax Thomas Total
Ries, Bax, and Thomas invested $54,000, $70,000, and $78,000, respectively, in a partnership. During its first calendar year, the firm earned $385,200. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $385,200 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $35,000 to Ries, $30,000 to Bax, and $42,000 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 $385,200 net income by providing annual salary allowances of $35,000 to Ries, $30,000 to Bax, and $42,000 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 Ries Bax Thomas Total
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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