At December 31, 2015 (the fiscal year-end), the adjusted trial balance of LMN Company shows the following values before the closing entries are prepared:

Partner Drawings Capital

Lois Lang $12,000 $30,000

Mary Mio 9,000 20,000

Sue Norton 6,000 10,000

Part 1) Journalize the entry to recored division of net income for 2015 under each of the following assumptions:

a) Net income is $28,000 and income is shared 5:3:2.

b) Net income is $30,000 ; Lang and Mio are given salary allowances of $10,000 and $8,000, respectively, and the remainder is shared equally.

c) Net income is $25,200; each partner is allowed interest of 10% on beg. capital balances; Lang is given a $15,000 salary allowance, and the remainder is shared equally.

Part 2) Prepare a statement of partners' capital for the year under assumption (c) above.