William and Christie form a partnership by investing $60,000 and $40,000 respectively.Their partnership agreement stipulates that William will receive an annual salary allowance of $6,000,and both partners will receive an interest allowance of 10% on their capital investment.Any net income remaining is to be allocated 60% to William,and 40% to Christie.Net income for their first year of operations is $40,000.Prepare the entry to close Income Summary.

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The Answer of William and Christie form a partnership by investing $60,000 and $40,000 respectively.Their partnership agreement stipulates that William will receive an annual salary allowance of $6,000,and both partners will receive an interest allowance of 10% on their capital investment.Any net income remaining is to be allocated 60% to William,and 40% to Christie.Net income for their first year of operations is $40,000.Prepare the entry to close Income Summary.

William and Christie Form a Partnership by Investing $60,000 and $40,000