70.2K

Verified Solution

Link Copied!

Required information 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 $36,000, $52,000, and $60,000, respectively. In a partnership During its first calendar year, the firm earned $377100. Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $377,100 net income to the partners under each of the following separate assumptions: Problem 12-3A Part 2 (2) The partners agreed to share income and loss in the ratio of their beginning capital investments. (Do not round Intermediate calculations. Round final answers to the nearest whole dollar) Income Allocated Income Summary into Capital Supporting Percentage of Computations Total Equity Kara Ries - $36,000/$ 148,000 Tammy Bax $52,000/$ 148,000 Joe Thomas $60,000/$ 148,000 x $ $ $ 377,100 377,100 377,100 View transaction list Journal entry worksheet Record the entry to close the income summary account assuring the partners have agreed to share income and loss in the ratio of their beginning capital investments Note: Enter debits before credits General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Problem 12-3A Part 3 (3) The partners agreed to share income and loss by providing annual salary allowances of $36,000 to Ries, $31,000 to Bax, and $43,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Thomas Total 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

Answer & Explanation Solved by verified expert

See Answer