Kara Ries, Tammy Bax, and Joe Thomas invested $54,000, $70,000, and $78,000, respectively, in a partnership. During its first calendar...

Kara Ries, Tammy Bax, and Joe Thomas invested $54,000, $70,000, and $78,000, respectively, in a partnership. During its first calendar year, the firm earned $403,200.

Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $403,200 net income to the partners under each of the following separate assumptions:

1.The partners have no agreement on the method of sharing income and loss.

2.The partners agreed to share income and loss in the ratio of their beginning capital investments

3.Close the income summary account assuming the partners have agreed to share income and loss in the ratio of their beginning capital investments