On January 1, 2020, Jack Skilling, Kenneth Lay, and Andy Fastow formed a partnership by contributing $30,000 in cash, $55,000 of equipment, and a delivery van worth $20,000 respectively. The partners agreed to share the profits and losses as follows: Lay and Fastow were to receive an annual salary allowance of $20 000 each and the remaining profit or loss was to be shared 5 : 2 : 3. On December 31, 2020, the partnerships first year-end, the Income Summary account had a debit balance of $25 000.

Required:

In the table below, calculate the partnership allocation for the year ended December 31, 2020 (4 marks)

Complete the December 31, 2020 journal entry to close the income summary account to the partners' capital accounts (1 marks)