Jenn Smith and Mike Yang had a partnership and shared incomes and losses based on an agreement

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Jenn Smith and Mike Yang had a partnership and shared incomes and losses based on an agreement that gave Jenn a salary allowance of $115,000 and Mike $90,000 with any unallocated income (loss) shared 3:2. Prepare the entry to close the Income Summary account at December 31, 2014, assuming a debit balance of $80,000.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Fundamental Accounting Principles Volume II

ISBN: 978-1259066511

14th Canadian Edition

Authors: Larson Kermit, Jensen Tilly

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