Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar year, the firm earned $416,100. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $416,100 net income under each of the following separate assumptions. Appropriation of profits General Journal Allocate $416,100 net income in the ratio of their beginning capital investments. Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar. Supporting Computations Percentage of Total Equity × Income Summary Allocated Income to Capital Ries × Bax × Thomas × Record the entry to close the income summary account assuming the partners have agreed to share income and loss in the ratio of their beginning capital investments. Note: Enter debits before credits. Date General Journal Debit Credit December 31
Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar year, the firm earned $416,100. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $416,100 net income under each of the following separate assumptions. Appropriation of profits General Journal Allocate $416,100 net income in the ratio of their beginning capital investments. Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar. Supporting Computations Percentage of Total Equity × Income Summary Allocated Income to Capital Ries × Bax × Thomas × Record the entry to close the income summary account assuming the partners have agreed to share income and loss in the ratio of their beginning capital investments. Note: Enter debits before credits. Date General Journal Debit Credit December 31
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 39P
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Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a
Required:
Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $416,100 net income under each of the following separate assumptions.
- Appropriation of profits
- General Journal
Allocate $416,100 net income in the ratio of their beginning capital investments.
Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar.
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|
- Record the entry to close the income summary account assuming the partners have agreed to share income and loss in the ratio of their beginning capital investments.
Note: Enter debits before credits.
|
|
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