Required information

Problem 12-3A Allocating partnership income LO P2

[The following information applies to the questions displayed below.]

Kara Ries, Tammy Bax, and Joe Thomas invested $40,000, $56,000, and $64,000, respectively, in a partnership. During its first calendar year, the firm earned $417,900. Prepare the entry to close the firms Income Summary account as of its December 31 year-end and to allocate the $417,900 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