At the end of its first year of operations, on December $31,2003,$ PDQ Company's accounts show thefollowing:Partner Drawings CapitalSue Peters $$21,000$ $$42,000$Tracey Davies $12,00027,000$Eileen Quirk $7,00022,000$The capital balance represents each partner's initial capital investment; net income or net loss for $2003$has not been closed to the partners' capital accounts.Instructions$($a$)$ Journalize the entry to record the division of net income for the year $2003$ under each of the followingassumptions:$1.$ Net loss is $$13,000$; Peters and Davies are given salary allowances of $$8,000$ and $$9,000,$respectively, and the remainder is shared equally$\mathrm{.}2.$ Net income is $$35,000$; Davies and Quirk are allowed interest of $10$ percent on beginningcapital balances; Peters is given a $$16,900$ salary allowance, and the remainder is sharedequally.$($b$)$ Prepare a schedule showing the division of net income under assumption $(2)$ above.$($c$)$ Prepare a statement of partners' capital for the year under assumption $(2)$ above.Action Plan Journalizing the division of net income is a closing entry. Allocate the provisions for salaries and interest before allocating the remainder. The Statement of Partners' Capital shows changes in individual capital accounts resulting frominvestments, drawings, and net income or net loss.Question $2$If the current rate of interest is $10\%$ and interest is compounded semiannually, what is the present valueof receiving $$10,000$ at the end of $7$ years?Question $3$If the current interest rate is $12\%$ and interes