Ries, Bax, and Thomas invested $40,000, $56,000, and $64,000, respectively, in a partnership. During its first calendar year, the firm earned $354,900. Required: Prepare the entry to close the firms Income Summary account as of its December 31 year-end and to allocate the $354,900 net income under each of the following separate assumptions:

3. The partners agreed to share income and loss by providing annual salary allowances of $33,000 to Ries, $28,000 to Bax, and $40,000 to Thomas; granting 10% interest on the partners beginning capital investments; and sharing the remainder equally.

Allocate $354,900 net income allowances of $33,000 to Ries, $28,000 to Bax, and $40,000 to Thomas; granting 10% interest on the partners beginning capital investments; and sharing the remainder equally.

Supporting Calculations	Ries	Bax	Thomas	Total
Net income				$354,900
Salary allowances				0
Balance after salary allowances				354,900
Interest allowances				0
Balance after interest and salaries				354,900
Balance allocated equally				0
Balance of income				$354,900
Shares of the partners	$0	$0	$0