109 110 Homework 12-1 111 At the end of its first year of operations, ABC Company has the following capital balances: 112 Adams of $45,000; Baker of $25,000; and Carter of $20,000. 113 a. Journalize the entry to record the division of income under the assumption that 114 net income is $40,000 and income is shared 6:3:1. 115 116 117 DR CR $40,000 A 118 119 120 b. Journalize the entry to record the division of income under the assumption that 121 net income is $48,000. Adams is giving a salary allowance of $20,000 and Baker a $10,000. 122 The remainder is shared equally. 123 Net Income: $48,000 124 Salary Allowance 125 Remaining Allocation 126 Total Division of Net Income 127 128 129 130 131 Adams Baker Carter Total DR HO 132 133 134 c.. Journalize the entry to record the division of income under the assumption that 135 net income is $21,600 and each partner is given an interest allowance of 10% on 136 their capital balance; Adams is given a $18,000 salary allowance; and the remainder is shared 137 equally: Net Income: $21,600 Adams Baker Carter 138 139 140 3.41 Sheet1 CR Total