PolaccoWalshTotal Net income (loss) $140,000 Capital allocation: Polacco$7,800 Walsh $7,800 Salary allowance: Polacco25,000 Walsh 15,000 Total salary and capital allocation32,80022,800(55,600) Net income (loss) remaining for allocation 84,400 Share of remainder: Polacco67,520 Walsh 16,880 Total allocation (84,400) Net income (loss) remaining for allocation 0 Net income (loss) allocated to the partners$100,320$39,680

Part 2

Requirement 2. Journalize the entry to close the Income Summary account for the year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

DateAccounts and ExplanationDebitCredit Income Summary