A partnership begins its first year of operations with the following capital balances:

Alberta............................................................... $$150,000$

Barcelona......................................................... $110,000$

Catalina............................................................. $150,000$

According to the articles of partnership, all profits will be assigned as follows:

$-$Annual salary to Alberta is $$50,000$ and Barcelona $$40,000$

$-$The partners will receive interest equal to $10\%$ of the capital balance as of the first day of the year.

$-$The remainder will be assigned on a $4$:$2$:$4$ basis, respectively.

$-$Each partner is allowed to withdraw up to $$15,000$ per year.

Notes: The net income for the first year of operations was $$125,000$ and $$150,000$ for year two. Each partner withdraws the maximum amount from the business each period.

Instructions: Prepare the schedules $($Allocation of Net Income and Statement of Capital$)$ to determine the ending capital in the partners$$ accounts. Prepare schedules in Excel.