Assignment: Problem 1: Eaton and Foley have capital balances of $50,000 and $30,000 respectively, at the beginning of the current fiscal year. The articles of partnership provide for an interest allowance at a rate of 8% on the capital balances at the beginning of the year; salary allowances of $18,000 and $12,000 respectively and the remaining net income divided equally. Net income for the current year is $30,000. a) Divide the net income between the partners. b) Prepare the necessary journal entry. Problem 2: The capital accounts of John Smith and Bill Wilson have balances if $140,000 and $90,000 respectively. Joan Jett and Mary Faber are to be admitted to the partnership. Jett buys one-fifth of Smith's interest for $30,000 and one-fourth of Wilson's interest for $20,000. Faber contributes $75,000 cash to the partnership, for which she is to receive an ownership equity of $75,000. a) Journalize the entries to record the admission of (1) Jett and (2) Faber