Cornish and Duffee form a partnership by investing $120,000 and $130,000 respectively.Their partnership agreement stipulates that Cornish will receive an annual salary allowance of $12,000,and both partners will receive an interest allowance of 5% on their capital investment.Any profit remaining is to be allocated 45% to Cornish,and 55% to Duffee.Profit for their first year of operations is $80,000.Prepare the entry to close Income Summary.

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The Answer of Cornish and Duffee form a partnership by investing $120,000 and $130,000 respectively.Their partnership agreement stipulates that Cornish will receive an annual salary allowance of $12,000,and both partners will receive an interest allowance of 5% on their capital investment.Any profit remaining is to be allocated 45% to Cornish,and 55% to Duffee.Profit for their first year of operations is $80,000.Prepare the entry to close Income Summary.

Cornish and Duffee Form a Partnership by Investing $120,000 and $130,000