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Problem 12-3A Allocating partnership income LO P2

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Kara Ries, Tammy Bax, and Joe Thomas invested $42,000, $58,000, and $66,000, respectively, in a partnership. During its first calendar year, the firm earned $373,800. Prepare the entry to close the firms Income Summary account as of its December 31 year-end and to allocate the $373,800 net income to the partners under each of the following separate assumptions:

Problem 12-3A Part 1

Required: (1) The partners have no agreement on the method of sharing income and loss.

Problem 12-3A Part 2

(2) The partners agreed to share income and loss in the ratio of their beginning capital investments. (Do not round intermediate calculations. Round final answers to the nearest whole dollar.)