8 C. Eastwood, A. North, and M. West are manufacturers' representatives in the architecture business. Their capital accounts in the ENW partnership for 20X1 were as follows: 5.88 points 9/1 C. Eastwood, Capital 9,900 1/1 5/1 31,100 7,600 Skipped 3/1 eBook A. North, Capital 10, 200 1/1 7/1 9/1 40,300 5,800 5,000 Print References 8/1 M. West, Capital 13,700 1/1 4/1 6/1 51,500 7,200 3,900 Required: For each of the following independent income-sharing agreements, prepare an income distribution schedule. a. Salaries are $16,100 to Eastwood, $21,000 to North, and $18,700 to West. Eastwood receives a bonus of 5 percent of net income after deducting his bonus. Interest is 10 percent of ending capital balances. Eastwood, North, and West divide any remainder in a 3:3:4 ratio, respectively. Net income was $78,330. (Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.) Eastwood North West Total Profit ratio 0 b. Interest is 10 percent of weighted-average capital balances. Salaries are $25,100 to Eastwood, $22,500 to North, and $26,200 to West. North receives a bonus of 10 percent of net income after deducting the bonus and her salary. Any remainder is divided equally. Net income was $70,130. (Do not round intermediate calculations. Round the 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.) Eastwood North West Total Profit ratio 0 Average capital Net income 0 Interest on average capital balance Salary o Bonus 0 Residual income (deficit) $ 0 Allocate o Total $ 0 $ O $ O $ 0 c. West receives a bonus of 20 percent of net income after deducting the bonus and the salaries. Salaries are $22,200 to Eastwood, $19,100 to North, and $15,400 to West. Interest is 10 percent of beginning capital balances. Eastwood, North, and West divide any remainder in an 8:7:5 ratio, respectively. Net income was $96,180. (Do not round intermediate calculations. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.) Eastwood North West Total Profit ratio 0 Beginning capital Net income Bonus 0 0 Salary Interest on beginning capital balance Residual income (deficit) 0 $ 0 Allocate 0 Total $ $ 0 $ 0 $ O $ 0 Record the revaluation of land. Note: Enter debits before credits. Event General Journal Debit Credit 1 e. Spade received $150,200 of partnership cash upon retirement. The partnership recorded the portion of goodwill attributable to Spade. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the payment of $150,200 upon retirement to Spade and the recognition of goodwill. Note: Enter debits before credits. Event General Journal Debit Credit 1 f. Spade received $150,200 of partnership cash upon retirement. The partnership goodwill attributable to all the partners was recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the recognition of goodwill for the entire firm upon Spade's retirement. Note: Enter debits before credits. General Journal Debit Credit Event 1 Journal entry worksheet Record the payment of the bonus to Spade upon his retirement. Note: Enter debits before credits. General Journal Debit Credit Event 2 g. Because of limited cash in the partnership, Spade received land with a fair value of $101,900 and a partnership note payable for $51,500. The land's carrying amount on the partnership books was $61,700. Capital of the partnership after Spade's retirement was $361,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the revaluation of land. Note: Enter debits before credits. General Journal Debit Credit Event 1 S Record the settlement of Spade's share by giving land and notes payable. Note: Enter debits before credits. General Journal Debit Credit Event 2