a. prepare a schedule showing the distribution of the net income for the partners assuming the partnership had net income of $55000 b. prepare the closing entries for the division of net income

PROBLEM 1 (10 points) ar &Sternhave capital balances on January 1 of $50,000 and S80,000 resp eney of 15% provides annual salaries of $22,000 for Carson and $17 000 for Stern, interest allowance remaining income or loss is to be shared 70% by Carson and 30% by Stern. p agreement on capital balances: and any nershi Instructions: a) Prepare a schedule showing the distribution of net income for the partners income of $55,000 b) Prepare the closing entries for the division of net income. Note: Write clearly and use proper labels [do not vels and calculations as abbreviatel. To earn full credit, you must show all the steps us needed to allocate salary and in using appropriate le terest allowance to partners. Do not simply show calculated amounts. DIVISION OF NET INCOME Carson Stern Total General Journal J1 Date Account Titles and Explanation Ref. Debit Credit