The partnership contract of Ann, Bud & Cal LLP provides for the remuneration of partners as follows:

1. Salaries of $40,000 to Ann, $35,000 to Bud, and $30,000 to Cal, to be recognized annually as operating expense of the partnership in the measurement of net income.

2. Bonus of 10% of income after salaries and the bonus to Ann.

3. Remaining net income or loss 30% to Ann, 20% to Bud, and 50% to Cal.

Income of Ann, Bud & Cal LLP before partners’ salaries and Ann’s bonus was $215,000 for the fiscal year ended December 31, 2005.

Prepare journal entries for Ann, Bud & Cal LLP on December 31, 2005, to (1) accrue partners’ salaries and Ann’s bonus and (2) close the Income Summary ledger account

(credit balance of $100,000) and divide the net income among the partners. Show supporting computations in the explanation for the second journal entry.