On Jan11,2011 Olivia and David organize as a partnership called the Landing Zone. Olivias initial net investment is $ 30,000 and Davids initial investment is $10,000. The partnerships net income for the year ended December 31, 2011 is $70,000.Allocate income and prepare the journal entry to close the income summary account. Provided-

a. Annual salary allowances of $40,000 to Olivia and $ 25,000 to David

b. Interest Allowances equal to 10% of each partners beginning -of- the year capital balance

c. Any remaining balance of income or loss to be shared 3:1