Required information

Skip to question

[The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $46,000, $62,000, and $70,000, respectively, in a partnership. During its first calendar year, the firm earned $421,200. Required: Prepare the entry to close the firms Income Summary account as of its December 31 year-end and to allocate the $421,200 net income under each of the following separate assumptions.

2. The partners agreed to share income and loss in the ratio of their beginning capital investments.