Hi, I need someone to check explain the question to me.

 

Kara Ries, Tammy Bax and Joe Thomas invested $80,000, $112,000 and $128,000 respectively in a partnership. During its first calendar year, the firm earned $249,000.

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

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.

Kohler Corporation reports the following components of stockholders equity onDecember 31, 2013:Common Stock- $10 par value, 100,000 shares authorized,40,000 shares issued and outstanding.....$400,000Paid-in capital in excess of par value, common stock .60,000Retained Earnings ....270,000Total Stockholders Equity .....$730.000In 2014, the following transactions affected its stockholders' equity accounts.Jan. 1: Purchased 4,000 shares of its own stock at $20 cash per share.Jan. 5: Directors declared a $2 per share cash dividend payable on Feb. 28 to thestockholder of record.Feb 28: Paid the dividend declared on January 5.July 6: Sold 1,500 of its treasury shares at $24 cash per share.Aug. 22: Sold 2,500 of its treasury shares at $17 cash per share.Sept. 5: Directors declared a $2 per share cash dividend payable on October 28 to theSeptember 25 stockholders of record.Oct 28: Paid the dividend declared on September 5.Dec. 31: Closed the $388,000 credit balance (from net income) in the Income Summaryaccount to Retained Earnings.Required:1. Prepare journal entries to record each of these transactions for 20142. Prepare a statement of retained earnings for the year ended December 31, 20143. Prepare the stockholders' equity section of the company's balance sheet as ofDecember 31, 2014.