Can I please get help with practice 6.4Required informationSkip to question [The following information applies to the questions displayed below.]Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar year, the firm earned $416,100.Required:Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $416,100 net income under each of the following separate assumptions.Appropriation of profitsGeneral JournalAllocate $416,100 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 ComputationsPercentage of Total Equity×Income SummaryAllocated Income to CapitalRies × Bax × Thomas × 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. DateGeneral JournalDebitCreditDecember 31

>Partnership Income (Loss) is allocated based on the partnership agreement.>The Net Income or…

Answered: Ries, Bax, and Thomas invested $48,000,…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 3PA

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Required information

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[The following information applies to the questions displayed below.]

Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar year, the firm earned $416,100.

Required:

Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $416,100 net income under each of the following separate assumptions.

Appropriation of profits
General Journal

Allocate $416,100 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		×

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
December 31

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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