Required information [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar year, the firm earned $413,700. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $413,700 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and $46,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Complete this question by entering your answers in the tabs below. Appropriation of profits General Journal Allocate $413,700 net income by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and $46,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Supporting Calculations Net income Salary allowances Balance after salary allowances Interest allowances Ries Bax Thomas Total 0 0 0 0 Balance after interest and salaries 0 Balance allocated equally $ 0 Balance of income Shares of the partners $ 0 $ 0 $ 0 < Appropriation of profits General Journal > < Prev 5 of 11 Next
Required information [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar year, the firm earned $413,700. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $413,700 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and $46,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Complete this question by entering your answers in the tabs below. Appropriation of profits General Journal Allocate $413,700 net income by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and $46,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Supporting Calculations Net income Salary allowances Balance after salary allowances Interest allowances Ries Bax Thomas Total 0 0 0 0 Balance after interest and salaries 0 Balance allocated equally $ 0 Balance of income Shares of the partners $ 0 $ 0 $ 0 < Appropriation of profits General Journal > < Prev 5 of 11 Next
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 3PA
Related questions
Question
Manji
![Required information
[The following information applies to the questions displayed below.]
Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar
year, the firm earned $413,700.
Required:
Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the
$413,700 net income under each of the following separate assumptions.
3. The partners agreed to share income and loss by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and
$46,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally.
Complete this question by entering your answers in the tabs below.
Appropriation
of profits
General
Journal
Allocate $413,700 net income by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and $46,000 to
Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally.
Supporting Calculations
Net income
Salary allowances
Balance after salary allowances
Interest allowances
Ries
Bax
Thomas
Total
0
0
0
0
Balance after interest and salaries
0
Balance allocated equally
$
0
Balance of income
Shares of the partners
$
0 $
0 $
0
< Appropriation of profits
General Journal >
< Prev
5 of 11
Next](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14207c9c-99d6-4f5e-84cb-edb0909e3f2c%2F10d964f6-15d6-40eb-8bbc-31b4aa90f784%2Fbg7a9af_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 $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar
year, the firm earned $413,700.
Required:
Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the
$413,700 net income under each of the following separate assumptions.
3. The partners agreed to share income and loss by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and
$46,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally.
Complete this question by entering your answers in the tabs below.
Appropriation
of profits
General
Journal
Allocate $413,700 net income by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and $46,000 to
Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally.
Supporting Calculations
Net income
Salary allowances
Balance after salary allowances
Interest allowances
Ries
Bax
Thomas
Total
0
0
0
0
Balance after interest and salaries
0
Balance allocated equally
$
0
Balance of income
Shares of the partners
$
0 $
0 $
0
< Appropriation of profits
General Journal >
< Prev
5 of 11
Next
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 1 images
Similar questions
Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,