At the end of its first year of operations on December 31, 2018, NBS Companys accounts show the following.

partner	drawing	capital
Arturo Nazario	46000	96000
Gregorio Batista	28000	60000
Katalina Santaella	20000	50000

The capital balance represents each partners initial capital investment. Therefore, the resulto of operations (net income or loss), or partners' drawing for 2018 has not been closed to the partners capital accounts.

Instructions (a) Journalize the entry to record the division of net income for the year 2018 under each of the following independent assumptions.

(1) Net income is $60,000. Income is shared 6:3:1.

(2) Net income is $80,000. Nazario and Batista are given salary allowances of $30,000 and $20,000, respectively. The remainder is shared equally.

(3) Net income is $38,000. Each partner is allowed interest of 10% on beginning capital balances. Nazario is given a $30,000 salary allowance. The remainder is shared equally

(b) Prepare a schedule showing the division of net income under assumption (3) above.

(c) Prepare a partners capital statement for the year under assumption (3) above.