Kara Ries, Tammy Bax and Joe Thomas invested $80,000, $112,000 and $128,000 respectively in a partnership. During its first calendar year, he firm earned $249,000. Prepare the entry to close the firms Income Summary account as of its December 31 year - end and to allocate th e $2 49,000 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. 10 pts. 2. Agreed to share income and loss in the ratio of their beginning capital investments and 15 pts. 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. 15 pts. 2. Kohler Corporation reports the following components of stockholders equity on December 31, 2013: Common Stock - $10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding. $400,000 Paid - in capital in excess of par value, common stock 60,000 Retained Earnings 270,000 Total Stockholders Equity $730,000 In 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 div idend payable on Feb. 28 to the stockholder 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 the September 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

Summary account to Retained Earnings.

Required:

1.

Prepare journal entries to record each of these transactions for 2014.

5pts.

for

each entry

.

2.

Prepare a statement of retained earnings for the year ended December

31, 2014

.

10 pts.

3.

Prepare the stockholders equity section of the companys balance sheet as of

December 31, 201