required information problem 12 - 3a (algo) allocating partnership income lo p2 the following information…

required information problem 12 - 3a (algo) allocating partnership income lo p2 the following information applies to the questions displayed below. ries, bax, and thomas invested $30,000, $46,000, and $54,000, respectively, in a partnership. during its first calendar year, the firm earned $317,700. required: prepare the entry to close the firms income summary account as of its december 31 year - end and to allocate the $317,700 net income under each of the following separate assumptions. problem 12 - 3a (algo) part 2 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 $317,700 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 ries bax thomas percentage of total equity × income summary × allocated income to capital

required information problem 12 - 3a (algo) allocating partnership income lo p2 the following information applies to the questions displayed below. ries, bax, and thomas invested $30,000, $46,000, and $54,000, respectively, in a partnership. during its first calendar year, the firm earned $317,700. required: prepare the entry to close the firms income summary account as of its december 31 year - end and to allocate the $317,700 net income under each of the following separate assumptions. problem 12 - 3a (algo) part 2 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 $317,700 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 ries bax thomas percentage of total equity × income summary × allocated income to capital

Answer

Explanation:

Step1: Calculate total initial investment

$30000 + 46000+54000 = 130000$

Step2: Calculate Riles' share - percentage of total equity

$\frac{30000}{130000}\approx 0.230769$

Step3: Calculate Riles' allocated income

$0.230769\times317700\approx 73315$

Step4: Calculate Bax' share - percentage of total equity

$\frac{46000}{130000}\approx 0.353846$

Step5: Calculate Bax' allocated income

$0.353846\times317700\approx 112417$

Step6: Calculate Thomas' share - percentage of total equity

$\frac{54000}{130000}\approx 0.415385$

Step7: Calculate Thomas' allocated income

$0.415385\times317700\approx 131968$

Name Percentage of Total Equity Income Summary Allocated Income to Capital
Riles 0.230769 317700 73315
Bax 0.353846 317700 112417
Thomas 0.415385 317700 131968

Answer:

Name Allocated Income
Riles $$73315$
Bax $$112417$
Thomas $$131968$