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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Transcribed Image Text: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
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