Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ries, Bax, and Thomas invested $46,000, $62,000, and $70,000, respectively, in a partnership. During its first calendar year, the firm earned $342,300. Required: Prepare
Ries, Bax, and Thomas invested $46,000, $62,000, and $70,000, respectively, in a partnership. During its first calendar year, the firm earned $342,300. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $342,300 net income under each of the following separate assumptions. 1. The partners did not agree on a plan, and therefore share income equally. View transaction list Journal entry worksheet < 1 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 December 31 General Journal Debit Credit Renasaliournal es 2. The partners agreed to share income and loss in the ratio of their beginning capital investments. Complete this question by entering your answers in the tabs below. Appropriation of profits General Journal Allocate $342,300 net income in the ratio of their beginning capital investments. Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar. Supporting Computations Percentage of Total Equity Income Summary Allocated Income to Capital Ries Bax Thomas x Prepare the entry to close the firm's Income Summary account as of its December 31 year-end. Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar. View transaction list 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 December 31 General Journal Debit Credit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started