Prepare the entry to close the net income

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Question - Alexander, Bennie, and Cary formed the ABC Partnership by making capital contributions of $183,750, $131,250, and $210,000, respectively. They predict annual partnership net income of $225,000 and are considering the following plan of sharing income and loss: salary allowances of $40,000 to Alexander, $30,000 to Bennie, and $45,000 to Cary; interest allowances of 10% on their initial capital investments; and the balance shared equally.

Required - Prepare the entry to close the net income.

Reference no: EM132527591

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