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How do I calculate interest allowances and balance allocated equally? Problem 12-3A Allocating...

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How do I calculate interest allowances and balance allocated equally?

Problem 12-3A Allocating partnership income LO P2 The following information applies to the questions displayed below.] Kara Ries, Tammy Bax, and Joe Thomas invested $52,000, $68,000, and $76,000, respectively, in a partnership. During its first calendar year, the firm earned $400,800. Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $400,800 net income to the partners under each of the following separate assumptions: Problem 12-3A Part 3 (3) The partners agreed to share income and loss by providing annual salary allowances of $37,000 to Ries, $32,000 to Bax, and $44,000 to Thomas; granting 10% interest on the partners' beginning capital investments, and sharing the remainder equally. Ries Bax Thomas $ Supporting Calculations Net income Salary allowances Balance after salary allowances Interest allowances Total 400,800 113,000 287,800 $ 37,000 $ 32,000 $ 44,000 Balance after interest and salaries 287,800 Balance allocated equally Balance of income Shares of the partners 5,000 282,800 $ $ 42,000 $ 32,000 $ 44,000

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