Liam and Katano formed a partnership to open a sushi restaurant by investing $$103,000$ and $$113,000,$ respectively. They agreed to share profit based on an allocation to Liam of an annual salary allowance of $$158,000,$ interest allowance to both Liam and Katano equal to $12\%$ of their beginning$-$of$-$year capital balance, and any balance based on a $1$:$3$ ratio, respectively. At the end of their first year, December $31,2023,$ the Income Summary had a credit balance of $$38,000.$ Liam withdrew $$15,000$ during the year and Katano $$32,000.$

Required:

Determine each partner's share if the first$-$year profit was $$38,000.$ Prepare the entry to close the Income Summary on December $31,2023.($Leave no cell blank. Enter $"$O$"$ when the answer is zero. Negative answers should be indicated by a minus sign.$)$

$\backslash$table$[[,\backslash$table$[[$Share to$],[$Liam$]],\backslash$table$[[$Share to$],[$Katano$]],$Total$],[-,,,],[,,,],[$Total salaries and intere,,,$],[$Balance of profit,,,$],[,,,],[$Remainder $1$:$3$ ratio:,,,$\{],[$Balance of profit,,,$],[$Shares of each partner,,,$]]$

Journal entry worksheet

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