Jakobs,Penn,and Lundt Are Partners with Beginning-Of-Year Capital Balances of $400,000,$320,000,and

Essay

Jakobs,Penn,and Lundt are partners with beginning-of-year capital balances of $400,000,$320,000,and $160,000,respectively.The partners agreed to share income and loss as follows: Salary of $30,000 to Jakobs,$50,000 to Penn,and $36,000 to Lundt.An interest allowance of 8% on beginning-of-year capital balances.Any remaining balance is to be divided equally.If partnership net income for the year is $190,000,determine each partner's share and make the appropriate journal entry to close the Income Summary to the capital accounts.