At the end of its first year of operations, December 31, 2016, ABC

Companys unadjusted accounts show the following:

Partner	Drawings	Capital
S. Abbott	$23,000	$50,000
D. Bartlett	14,000	30,000
R. Cross	10,000	20,000

The capital balance above represents each partners initial capital

investment. No closing entries have been recorded for net income (loss) or

drawings as yet.

Required:

a) Journalize the entry to record the division of net income for the year

ended December 31, 2016 under each of the following independent

assumptions: (Hint: you may find it helpful to prepare a schedule like

one of those shown in the textbook)

1. Net income is shared on the ratio of their initial investments.

Net income is $47,000.

2. Net income is $34,000. Bartlett and Cross are given salary

allowances of $15,000 and $10,000 respectively. The

remainder is shared equally.

3. Net income is $23,000. Each partner is allowed interest of 5%

on beginning capital balances. Cross is given a $15,000 salary

allowance. The remainder is shared equally.

b) Journalize the entry to close each partners drawings account.

c) Prepare a statement of partners equity for the year end under

assumption #3 in part (a) above.