Required information [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $80,000, $112,000, and $128,000, respectively, in a partnership. During its first calendar year, the firm earned $249,000. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $249,000 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $66,000 to Ries, $56,000 to Bax, and $80,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Complete this question by entering your ans below. Appropriation General of profits Journal Allocate $249,000 net income by providing annual $66,000 to Ries, $56,000 to Bax, and $80,000 to interest on the partners' beginning capital investm remainder equally.
Required information [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $80,000, $112,000, and $128,000, respectively, in a partnership. During its first calendar year, the firm earned $249,000. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $249,000 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $66,000 to Ries, $56,000 to Bax, and $80,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Complete this question by entering your ans below. Appropriation General of profits Journal Allocate $249,000 net income by providing annual $66,000 to Ries, $56,000 to Bax, and $80,000 to interest on the partners' beginning capital investm remainder equally.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 3PB
Related questions
Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question
![Required information
[The following information applies to the questions
displayed below.]
Ries, Bax, and Thomas invested $80,000, $112,000, and
$128,000, respectively, in a partnership. During its first
calendar year, the firm earned $249,000.
Required:
Prepare the entry to close the firm's Income Summary
account as of its December 31 year-end and to allocate the
$249,000 net income under each of the following separate
assumptions.
3. The partners agreed to share income and loss by providing
annual salary allowances of $66,000 to Ries, $56,000 to Bax,
and $80,000 to Thomas; granting 10% interest on the partners'
beginning capital investments; and sharing the remainder
equally.
Complete this question by entering your ans
below.
Appropriation General
of profits
Journal
Allocate $249,000 net income by providing annual
$66,000 to Ries, $56,000 to Bax, and $80,000 to
interest on the partners' beginning capital investm
remainder equally.
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
$
Ries
$
Bax
< Appropriation of profits
0 $
Thomas
0
$
T
General Journa](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f3f54c4-95c2-4374-8a15-52c156a3a27b%2Fba2f4e77-38d2-458c-bf36-7fa2e8291774%2Fncy4jfo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions
displayed below.]
Ries, Bax, and Thomas invested $80,000, $112,000, and
$128,000, respectively, in a partnership. During its first
calendar year, the firm earned $249,000.
Required:
Prepare the entry to close the firm's Income Summary
account as of its December 31 year-end and to allocate the
$249,000 net income under each of the following separate
assumptions.
3. The partners agreed to share income and loss by providing
annual salary allowances of $66,000 to Ries, $56,000 to Bax,
and $80,000 to Thomas; granting 10% interest on the partners'
beginning capital investments; and sharing the remainder
equally.
Complete this question by entering your ans
below.
Appropriation General
of profits
Journal
Allocate $249,000 net income by providing annual
$66,000 to Ries, $56,000 to Bax, and $80,000 to
interest on the partners' beginning capital investm
remainder equally.
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
$
Ries
$
Bax
< Appropriation of profits
0 $
Thomas
0
$
T
General Journa
Transcribed Image Text:oplies to the questions
ted $80,000, $112,000, and
partnership. During its first
ed $249,000.
e firm's Income Summary
31 year-end and to allocate the
each of the following separate
are income and loss by providing
$66,000 to Ries, $56,000 to Bax,
nting 10% interest on the partners'
s; and sharing the remainder
ition by entering your answers in the tabs
: income by providing annual salary allowances of
000 to Bax, and $80,000 to Thomas; granting 10%
rs' beginning capital investments; and sharing the
Ries
0 $
Bax
Appropriation of profits
0 $
Thomas
0
$
Total
General Journal >
0
0
0
0
0
0
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