ries, bax, and thomas invested $30,000, $46,000, and $54,000, respectively, in a partnership. during its…

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 firm’s 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 1 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.

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 firm’s 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 1 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.

Answer

Explanation:

Step1: Calculate each partner's share

Since there are 3 partners and they share income equally, we divide the total net - income by 3. The total net - income is $317,700. Each partner's share is $\frac{317700}{3}=105900$.

Step2: Record the journal entry

To close the Income Summary account and allocate the income, we debit the Income Summary account for the total net - income and credit each partner's capital account for their share of the income. The journal entry is:

Account Title Debit Credit
Income Summary 317700
Ries, Capital 105900
Bax, Capital 105900
Thomas, Capital 105900

Answer:

Account Title Debit Credit
Income Summary 317700
Ries, Capital 105900
Bax, Capital 105900
Thomas, Capital 105900