On Jan11,2011 Olivia and David organize as a partnership called the Landing Zone.

Olivia's initial net investment is $ 30,000 and David's initial investment is $10,000. The

partnership's 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. Provideda.

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

b. Interest Allowances equal to 10% of each partner's beginning -of- the year capital

balance

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