A, B, C are co-partners in METU Company. The partnership agreement provides for: (1) salary allowances of $9,520 to A, $10,300 to B, and Zero to C; (2) interest allowances of 10% on capital balances at the beginning of the year, and (3) the remainder is distributed 3:2:1. Capital balances on January 1 were A $30,000, B $24,000, and C 32,000. In 2019, partnership net income is $10,000. The division of net income is as follows.

Instructions

(a) Prepare a schedule showing the distribution of net income.

(b) Journalize the allocation of net income.