Ries, Bax, and Thomas invested $20,000, $36,000, and $44,000, respectively, in a partnership. During its first calendar year, the firm earned $307,800. Required: Prepare the entry to close the firms Income Summary account as of its December 31 year-end and to allocate the $307,800 net income under each of the following separate assumptions.

3. The partners agreed to share income and loss by providing annual salary allowances of $30,000 to Ries, $25,000 to Bax, and $37,000 to Thomas; granting 10% interest on the partners beginning capital investments; and sharing the remainder equally.