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Assume that Eric Duffy and Johnnie Gladwin operate a partnership. Their partnership agreement states that E....

Assume that Eric Duffy and Johnnie Gladwin operate a partnership. Their partnership agreement states that E. Duffy receives two–thirds of the partnership income or loss and J. Gladwin receives the remaining one–third. The partnership's income statement reported net income of $90,000 for the year ending December 31. Prepare the December 31 journal entry that would be required to close the Income Summary account and allocate the net income to the two partners.

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--Journal entry as asked

Date Accounts title Debit Credit
31-Dec Income Summary $90,000
   Eric Duffy, Capital ($90000 x 2/3) $60,000
   Johnie Gladwin, Capital ($90000 x 1/3) $30,000
(to record distribution of net income)
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