On January 1, 2021, the capital balances in Cullumber Partnership are as follows:

Zoya Gable		$20,000
Matthew Smith		$24,480

Neither partner had any drawings in 2021.

Your answer is partially correct. Prepare the closing entry to allocate the partnership profit if in 2021, the partnership reports profit of $61,200. Assume the partnership agreement calls for profit to be divided with a salary of $40,800 to Gable and $30,600 to Smith. Gable is allowed 6% of interest on her beginning capital, and the remainder is divided 70%-30%. (Round answers to decimal places, eg. 5,276. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Income Summary 61200 M. Smith, Capital 24900 Z Gable, Capital 35100 (To close Income Summary)