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9 Required information [The following information applies to the questions displayed below] Kara Ries, Tammy Bax, and Joe Thomas invested $40,000. $56 000, and $64 000, respectively in a partnership. During h first calendar year, the firm earned $364,200. Part 1 of 3 10 points Prepare the entry to close the firm\'s Income Summary account as of its December 31 year end and to allocate the $364,200 net income to the partners under each of the following separate assumptions ook Required () The partners have no agreement on the method of sharng income and loss Print Journal entry worksheet Record the entry to close the income summary account assuming the partners have no agreement on the method of sharing income and loss.

Solution

Req 1: Journal entry Income Summary Account Dr. 364200      Kara Ries Capital Account 121400      Tammy Bax capital Account 121400      Joe thomas Capital Account 121400 Req 2: Equity % of total Income Summary Allocated Income Kara Ries 40000 25% 364200 91050 Tammy Bax 56000 35% 364200 127470 Joe Thomas 64000 40% 364200 145680 160000 364200 Journal entry Income Summary Account Dr. 364200      Kara Ries Capital Account 91050      Tammy Bax capital Account 127470      Joe thomas Capital Account 145680 Req 3: Supporting calculations Kara Bax Thomas Total Nnet Income 364200 Salary allowance 34000 29000 41000 104000 Remaining income 260200 Interest on capital 4000 5600 6400 16000 Remaining Income 244200 Balance alloccated equally 81400 81400 81400 244200 Balance of income 0 Share of Partners 119400 116000 128800 Journal entry Income Summary Account Dr. 364200      Kara Ries Capital Account 119400      Tammy Bax capital Account 116000      Joe thomas Capital Account 128800