Required information Problem 12-3A (Algo) Allocating partnership income LO P2 Skip to question [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $58,000, $74,000, and $82,000, respectively, in a partnership. During its first calendar year, the firm earned $361,500. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $361,500 net income under each of the following separate assumptions.
Required information Problem 12-3A (Algo) Allocating partnership income LO P2 Skip to question [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $58,000, $74,000, and $82,000, respectively, in a partnership. During its first calendar year, the firm earned $361,500. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $361,500 net income under each of the following separate assumptions.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 3SEB
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Required information
Problem 12-3A (Algo) Allocating partnership income LO P2
Skip to question
[The following information applies to the questions displayed below.]
Ries, Bax, and Thomas invested $58,000, $74,000, and $82,000, respectively, in a partnership. During its first calendar year, the firm earned $361,500.
Required:
Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $361,500 net income under each of the following separate assumptions.
![oblem 12-3A (Algo) Part 3
The partners agreed to share income and loss by providing annual salary allowances of $32,000 to Ries, $27,000 to
x, and $39,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the
mainder equally.
Complete this question by entering your answers in the tabs below.
ppropriation
of profits
General
Journal
Allocate $361,500 net income by providing annual salary allowances of $32,000 to Ries, $27,000 to Bax, and $39,000 to
Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally.
Supporting Calculations
et income
alary allowances
alance after salary allowances
terest allowances
alance after interest and salaries
alance allocated equally
alance of income
hares of the partners
Ries
Bax
< Appropriation of profits
Thomas
Total
General Journal >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f0687f5-60ba-4c2c-ac3d-204d07b8b8bb%2F3269904a-a6a9-4a7d-9ac8-0ba6ba3aee32%2F6cx8l8g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:oblem 12-3A (Algo) Part 3
The partners agreed to share income and loss by providing annual salary allowances of $32,000 to Ries, $27,000 to
x, and $39,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the
mainder equally.
Complete this question by entering your answers in the tabs below.
ppropriation
of profits
General
Journal
Allocate $361,500 net income by providing annual salary allowances of $32,000 to Ries, $27,000 to Bax, and $39,000 to
Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally.
Supporting Calculations
et income
alary allowances
alance after salary allowances
terest allowances
alance after interest and salaries
alance allocated equally
alance of income
hares of the partners
Ries
Bax
< Appropriation of profits
Thomas
Total
General Journal >
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