-/1 E Question 5 of 10 View Policies Current Attempt in Progress McGill and Smyth have capital balances on January 1 of $41,000 and $34,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $25,000 for McGilland $17,000 for Smyth, (2) interest at 12% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGilland 40% by Smyth. Part 1 (1) Prepare a schedule showing the distribution of net income, assuming net income is 585,000. (If an amount reduces the account balance then enter with a negative sin preceding the number or parenthesis, -15.000. (15.0001 DIVISION OF NET INCOME McGill Smyth Total Salary allowance Interest allowance Total salaries and interest Remaining income de ciency Total division of net income 5 (2) Prepare a schedule showing the distribution of net income, assuming net income is 523.000. Of an amount reduces the account (2) Prepare a schedule showing the distribution of net income, assuming net income is $23,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis es -15,000. (15,000 DIVISION OF NET INCOME McGill Smyth Total Salary allowance Interest allowance Total salaries and interest Remaining income dehciency M Total division of net income $ Journalize the allocation of net income in each of the situations above. (Credit account titles are automatically indented whe amount is entered. Do not indent manually. Record entries in the order presented in the previous part.) No. Account Titles and Explanation Debit Credit 1. 2.