At the end of its first year of operations on December 31, 2022, Sunland Company's accounts show the following.

Partner		Drawings		Capital
Art Niensted		$26,680		$55,680
Greg Bolen		11,704		34,800
Krista Sayler		11,600		29,000

The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2022 has not been closed to the partners' capital accounts.

(a)

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Journalize the entry to record the division of net income for the year 2022 under each of the following independent assumptions. (Credit account titles are automatically indented when the NestedNestedamount is entered. Do not indent manually.)

1.		Net income is $34,800. Income is shared 6:3:1.
2.		Net income is $46,400. Nested and Bolen are given salary allowances of $17,400and $11,600, respectively. The remainder is shared equally.
3.		Net income is $22,040. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $17,400salary allowance. The remainder is shared equally.

No.	Account Titles and Explanation	Debit	Credit
1.	select an account title to record the division of net income under the first assumption Depreciation ExpenseNotes PayableLoss on RealizationK. Sayler, CapitalAccounts payable. Bolen, CapitalK. Sayler, DrawingsNet (Loss) IncomeAccounts ReceivableIncome SummaryAccumulated Depreciation - equipment. Nested, Capitale. Nestedaccounts, DrawingsAllowance for Doubtful AccountsSalaries ExpenseG. Bolen, DrawingsCashGain on RealizationInventoryEquipment	enter a debit amount	enter a credit amount
	select an account title to record the division of net income under the first assumption Loss on RealizationIncome SummaryAccounts ReceivableK. Sayler, CapitalG. Bolen, DrawingsAccumulated Depreciation - EquipmentGain on RealizationEquipmentK. Sayler, DrawingsAccounts PayableNotes PayableSalaries ExpenseAllowance for Doubtful AccountsG. Bolen, CapitalNet (Loss) IncomeCashA. Nesteddrawings, DrawingsDepreciation ExpenseA. Nested, CapitalInventory	enter a debit amount	enter a credit amount
	select an account title to record the division of net income under the first assumption A. Niensted, DrawingsAccumulated Depreciation - EquipmentDepreciation ExpenseSalaries ExpenseAccounts PayableEquipmentIncome SummaryLoss on RealizationG. Bolen, DrawingsG. Bolen, CapitalK. Sayler, DrawingsAllowance for Doubtful AccountsInventoryNet (Loss) IncomeCashAccounts ReceivableNotes payable. NestedNested, CapitalK. Sayler, CapitalGain on Realization	enter a debit amount	enter a credit amount
	select an account title to record the division of net income under the first assumption Accounts ReceivableG. Bolen, DrawingsLoss on RealizationK. Sayler, CapitalAllowance for Doubtful AccountsGain on RealizationCashG. Bolen, Capitale. Niensted, DrawingsIncome SummaryAccounts PayableDepreciation ExpenseK. Sayler, DrawingsAccumulated Depreciation - EquipmentNotes payable. Nestedpayable, CapitalInventoryEquipmentNet (Loss) IncomeSalaries Expense	enter a debit amount	enter a credit amount
2.	select an account title to record the division of net income under the second assumption Gain on RealizationDepreciation ExpenseAllowance for Doubtful AccountsK. Sayler, DrawingsCashG. Bolen, CapitalEquipmentG. Bolen, DrawingsIncome SummaryAccounts ReceivableAccounts PayableA. Nested, CapitalInventoryNotes payable. Nested, DrawingsAccumulated Depreciation - EquipmentLoss on RealizationNet (Loss) income drawings. Sayler, CapitalSalaries Expense	enter a debit amount	enter a credit amount
	select an account title to record the division of net income under the second assumption Net (Loss) IncomeG. Bolen, CapitalAccumulated Depreciation - EquipmentSalaries ExpenseAccounts ReceivableA. Nested, DrawingsK. Sayler, DrawingsA. Nested, CapitalCashIncome SummaryAllowance for Doubtful AccountsNotes PayableK. Sayler, CapitalAccounts payable account realization. Bolen, DrawingsDepreciation ExpenseLoss on RealizationEquipmentInventoryGain on Realization	enter a debit amount	enter a credit amount
	select an account title to record the division of net income under the second assumption CashSalaries ExpenseIncome SummaryAllowance for Doubtful AccountsA. Nested, DrawingsNotes payable. Nested, CapitalAccounts ReceivableInventoryK. Sayler, DrawingsAccumulated Depreciation - EquipmentAccounts payable. Bolen, DrawingsDepreciation ExpenseG. Bolen, CapitalLoss on RealizationK. Sayler, CapitalNet (Loss) IncomeGain on RealizationEquipment	enter a debit amount	enter a credit amount
	select an account title to record the division of net income under the second assumption Income SummaryNet (Loss) IncomeLoss on RealizationA. Nested, CapitalAccounts ReceivableGain on RealizationG. Bolen, CapitalEquipmentCashG. Bolen, DrawingsSalaries ExpenseNotes PayableAccumulated Depreciation - equipment. Sayler, CapitalAllowance for Doubtful AccountsK. Sayler, drawings. Nestedrealization, DrawingsDepreciation ExpenseInventoryAccounts Payable	enter a debit amount	enter a credit amount
3.	select an account title to record the division of net income under the third assumption K. Sayler, CapitalG. Bolen, DrawingsK. Sayler, DrawingsNotes PayableIncome SummaryAccounts PayableAccounts ReceivableNet (Loss) IncomeInventoryGain on RealizationA. Nested, DrawingsEquipmentDepreciation ExpenseLoss on RealizationAllowance for Doubtful AccountsCashA. NestedNested, CapitalSalaries ExpenseG. Bolen, CapitalAccumulated Depreciation - Equipment	enter a debit amount	enter a credit amount
	select an account title to record the division of net income under the third assumption Allowance for Doubtful AccountsIncome SummaryAccounts PayableCashA. Niensted, CapitalK. Sayler, CapitalK. Sayler, drawings. Bolen, CapitalLoss on RealizationNotes PayableSalaries ExpenseA. Nested, drawings. Bolen, DrawingsAccounts ReceivableInventoryNet (Loss) IncomeDepreciation ExpenseEquipmentGain on RealizationAccumulated Depreciation - Equipment	enter a debit amount	enter a credit amount
	select an account title to record the division of net income under the third assumption G. Bolen, CapitalAccounts PayableEquipmentCashNet (Loss) IncomeAccumulated Depreciation - EquipmentNotes PayableDepreciation ExpenseSalaries ExpenseK. Sayler, DrawingsLoss on RealizationIncome SummaryA. Nested, CapitalAllowance for Doubtful AccountsK. Sayler, CapitalAccounts ReceivableGain on realization. Nested, drawings. Bolen, DrawingsInventory	enter a debit amount	enter a credit amount
	select an account title to record the division of net income under the third assumption K. Sayler, drawings. Bolen, CapitalK. Sayler, CapitalIncome SummaryAccounts ReceivableGain on RealizationAccumulated Depreciation - equipment. Bolen, DrawingsNet (Loss) IncomeNotes PayableAllowance for Doubtful AccountsSalaries ExpenseInventoryA. Nested, DrawingsCashEquipmentDepreciation ExpenseLoss on RealizationAccounts payable. Nested, Capital	enter a debit amount	enter a credit amount

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Prepare a schedule showing the division of net income under the Nestedassumption (3) above. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).)

DIVISION OF NET INCOME
		Art Nested		Greg Bolen		Krista Sayler		Total
Salary allowance		$enter a dollar amount		enter a dollar amount		enter a dollar amount		$enter a dollar amount
Interest allowance on capital		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Total salaries and interest		enter a total of the two previous amounts		enter a total of the two previous amounts		enter a total of the two previous amounts		enter a total of the two previous amounts
Remaining excess/ deficiency		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Total division of net income		$enter a total amount		$enter a total amount		$enter a total amount		$enter a total amount

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