2.

The income statement for the Apple-Jack Partnership for the year ended December 31, 20X5, follows:

APPLE-JACK PARTNERSHIP

Income Statement

For the Year Ended December 31, 20X5Net Sales$300,000Cost of Goods Sold(190,000)Gross Margin$110,000Operating Expenses(30,000)Net Income$80,000

Additional Information for 20X5

1. Apple began the year with a capital balance of $40,800.
2. Jack began the year with a capital balance of $112,000.
3. On April 1, Apple invested an additional $15,000 into the partnership.
4. On August 1, Jack invested an additional $20,000 into the partnership.
5. Throughout 20X5, each partner withdrew $400 per week in anticipation of partnership net income. The partners agreed that these withdrawals arenotto be included in the computation of average capital balances for purposes of income distributions.

Apple and Jack have agreed to distribute partnership net income according to the following plan:

AppleJack1.Interest on average capital balances6%6%2.Bonus on net income before the bonus but

after interest on average capital balances10%3.Salaries$25,000$30,0004.Residual (if positive)70%30%Residual (if negative)50%50%

a. Prepare schedule that discloses the distribution of partnership net income for 20X5.(Do not round intermediate calculations. Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.)

b. Prepare the statement of partners' capital at December 31, 20X5.(Do not round intermediate calculations. Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.)

c. How would your answer to partachange if all of the provisions of the income distribution plan were the same except that the salaries were $30,000 to Apple and $35,000 to Jack?(Do not round intermediate calculations. Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.)

Please help!