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. 2. The partners agreed to share income and loss in the ratio of their beginning capital investments. Complete this question by entering your answers Appropriation General of profits Journal Allocate $249,000 net income in the ratio of their begin (Do not round intermediate calculations.) Supporting Percentage of Total Computations Equity Ries Bax Thomas X X x Income Summary Allocated Income to Capital
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. 2. The partners agreed to share income and loss in the ratio of their beginning capital investments. Complete this question by entering your answers Appropriation General of profits Journal Allocate $249,000 net income in the ratio of their begin (Do not round intermediate calculations.) Supporting Percentage of Total Computations Equity Ries Bax Thomas X X x Income Summary Allocated Income to Capital
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 2BCRQ
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.
2. The partners agreed to share income and loss in the ratio of
their beginning capital investments.
Complete this question by entering your answers
Appropriation General
of profits
Journal
Allocate $249,000 net income in the ratio of their begin
(Do not round intermediate calculations.)
Supporting Percentage of Total
Computations
Equity
Ries
Bax
Thomas
X
X
X
Income
Summary
Allocated Income
to Capital
< Appropriation of profits
General Journa](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f3f54c4-95c2-4374-8a15-52c156a3a27b%2F409779de-40ab-4d39-a1ce-4e7da4e34519%2Fvfhtpqk_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.
2. The partners agreed to share income and loss in the ratio of
their beginning capital investments.
Complete this question by entering your answers
Appropriation General
of profits
Journal
Allocate $249,000 net income in the ratio of their begin
(Do not round intermediate calculations.)
Supporting Percentage of Total
Computations
Equity
Ries
Bax
Thomas
X
X
X
Income
Summary
Allocated Income
to Capital
< Appropriation of profits
General Journa
![[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.
2. The partners agreed to share income and loss in the ratio of
their beginning capital investments.
Complete this question by entering your ans
Appropriation General
of profits
Journal
Prepare the entry to close the firm's Income Sumr
December 31 year-end. (Do not round intermediat
View transaction list
Journal entry worksheet
< 1
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
December
31
Record entry
General Journal
Clear entry
Debit
Credit
View genera](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f3f54c4-95c2-4374-8a15-52c156a3a27b%2F409779de-40ab-4d39-a1ce-4e7da4e34519%2Fp7m3jq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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.
2. The partners agreed to share income and loss in the ratio of
their beginning capital investments.
Complete this question by entering your ans
Appropriation General
of profits
Journal
Prepare the entry to close the firm's Income Sumr
December 31 year-end. (Do not round intermediat
View transaction list
Journal entry worksheet
< 1
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
December
31
Record entry
General Journal
Clear entry
Debit
Credit
View genera
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,