Ries, Bax, and Thomas invested $20,000, $36,000, and $44,000, respectively, in a partnership. During its first calendar year, the firm earned $381,000. Required: Prepare the entry to close the firms Income Summary account as of its December 31 year-end and to allocate the $381,000 net income under each of the following separate assumptions:

1. The partners did not agree on a plan, and therefore share income equally.

• Record the entry to close the income summary account assuming the partners did not agree on a plan, and therefore share income equally.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec 31

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.)

• Appropriation of profits
• General Journal

Allocate $381,000 net income in the ratio of their beginning capital investments. (Do not round intermediate calculations. Round final answers to the nearest whole dollar.)

Supporting	Percentage of	x	Income	Allocated Income
Computations	Total Equity		Summary	to Capital
Ries		x
Bax		x
Thomas		x

Prepare the entry to close the firms Income Summary account as of its December 31 year-end. (Do not round intermediate calculations. Round final answers to the nearest whole dollar.)

Journal entry worksheet

• Record the entry to close the income summary account assuming the partners have agreed to share income and loss in the ratio of their beginning capital investments.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec 31

3. The partners agreed to share income and loss by providing annual salary allowances of $38,000 to Ries, $33,000 to Bax, and $45,000 to Thomas; granting 10% interest on the partners beginning capital investments; and sharing the remainder equally.

Allocate $381,000 net income allowances of $38,000 to Ries, $33,000 to Bax, and $45,000 to Thomas; granting 10% interest on the partners beginning capital investments; and sharing the remainder equally.

Supporting Calculations	Ries	Bax	Thomas	Total
Net income
Salary allowances				0
Balance after salary allowances				0
Interest allowances				0
Balance after interest and salaries				0
Balance allocated equally				0
Balance of income				$0
Shares of the partners	$0	$0	$0

Prepare the entry to close the firms Income Summary account as of its December 31 year-end.

Journal entry worksheet

• Record the entry to close the income summary account assuming the partners have agreed to share income and loss by providing annual salary allowances of $38,000 to Ries, $33,000 to Bax, and $45,000 to Thomas; granting 10% interest on the partners beginning capital investments; and sharing the remainder equally.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec 31