K. Ison (beginning capital, $50,000) and I. McCoy (beginning capital $80,000) are partners. During 2021, the partnership reported profit of $60,000, and Ison made drawings of $15,000 while McCoy made drawings of $20,000.

Instructions

a. Assume the partnership agreement calls for profit to be divided 55% to Ison and 45% to McCoy. Prepare the journal entry to close the Income Summary account.

b. Assume the partnership agreement calls for profit to be divided with a salary of $30,000 to K. Ison and $20,000 to I. McCoy, with the remainder divided 55% to Ison and 45% to McCoy. Prepare the journal entry to close the Income Summary account.

c. Assume the partnership agreement calls for profit to be divided with a salary of $40,000 to K. Ison and $30,000 to I. McCoy, interest of 10% on beginning capital, and the remainder divided 50%–50%. Prepare the journal entry to close the Income Summary account.