09 10 Homework 12-1 11 At the end of its first year of operations, ABC Company has the following capital balances: 12 Adams of $45,000; Baker of $25,000; and Carter of $20,000. All of the following are independent of each other. 13 a. Journalize the entry to record the division of income under the assumption that 14 net income is $45,000 and income is shared 6:3:1. 15 16 DR. CR 17 18 19 20 b. Journalize the entry to record the division of income under the assumption that 21 net income is $47,000. Adams is giving a salary allowance of $25,000 and Baker a $10,000. 22 The remainder is shared equally. 23 Net Income: $47,000 24 Salary Allowance 25 Remaining Allocation 26 Total Division of Net Income 27 28 29 30 31 32 Adams Baker Carter DR CR c.. Journalize the entry to record the division of income under the assumption that 35 net income is $21,600 and each partner is given an interest allowance of 10% on 36 their capital balance; Adams is given a $15,000 salary allowance; and the remainder is shared 37 equally: 38 139 40 141 142 Net Income: $21,600 Adams Baker Carter Total Total 4 c.. Journalize the entry to record the division of income under the assumption that 5 net income is $21,600 and each partner is given an interest allowance of 10% on 6 their capital balance; Adams is given a $15,000 salary allowance; and the remainder is shared 37 equally: 38 39 40 Net Income: $21,600 Adams Baker Carter 41 42 43 44 45 46 47 48 49 150 DR CR Total