A and B are partners with capital balances of $360,000 and $540,000 respectively at the beginning of the year. The partnership agreement provides for salary allowances of $2,000 and $3,000 per month respectively. Interest on capital at 6 % on the capital balances at the beginning of the year. Net income for the current year was $60,000.

(a) Prepare an income distribution schedule for the current year.

(b) Journalize the closing entry for (a) above