O. Guillen (beginning capital, \($60,000)\) and K. Williams (beginning capital \($90,000)\) are partners. During 2008, the partnership earned net income of \($70,000,\) and Guillen made drawings of \($18,000\) while Williams made drawings of \($24,000.\)

Instructions

(a) Assume the partnership income-sharing agreement calls for income to be divided 45% to Guillen and 55% to Williams. Prepare the journal entry to record the allocation of net income.

(b) Assume the partnership income-sharing agreement calls for income to be divided with a salary of \($30,000\) to Guillen and \($25,000\) to Williams, with the remainder divided 45% to Guillen and 55% to Williams. Prepare the journal entry to record the allocation of net income.

(c) Assume the partnership income-sharing agreement calls for income to be divided with a salary of \($40,000\) to Guillen and \($35,000\) to Williams, interest of 10% on beginning capital, and the remainder divided 50%-—50%. Prepare the journal entry to record the allocation of net income.

(d) Compute the partners’ ending capital balances under the assumption in part (c).