Kim Ries, Tere Bax, and Josh 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 to the partners under each of the following separate assumptions: The partners (1) have no agreement on the method of sharing income and loss; (2) agreed to share income and loss in the ratio of their beginning capital investments; and (3) agreed to share income and loss by providing annual salary allowances of $66,000 to Ries, $56,000 to Bax, and $80,000 to Thomas; granting 10% interest on the partners’ beginning capital investments; and sharing the remainder equally.

AppendixLO1