Lisa Montgomery and Joel Calmar had a partnership and shared incomes and losses based on an agreement

Question:

Lisa Montgomery and Joel Calmar had a and shared incomes and losses based on an agreement that gave Lisa a salary allowance of $45,000 and Joel $10,000 with any unallocated income (loss) shared equally. Prepare the entry to close the Income Summary account at December 31, 2014, assuming a credit balance of $48,000.

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...