At the end of its first year of operations on December 31, 2022, Carla Vista Company's accounts show the following. Partner Drawings Capital Art Niensted $27,140 $56,640 Greg Bolen 11,732 35,400 Krista Sayler 11,800 29,500 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) Your answer is partially correct. 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 amount is entered. Do not indent manually.) 1. Net income is $35,400. Income is shared 6:3:1. 2. Net income is $47,200. Niensted and Bolen are given salary allowances of $17,700 and $11,800, respectively. The remainder is shared equally. 3. Net income is $22.420. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $17,700 salary allowance. The remainder is shared equally. No. Account Titles and Explanation Debit Credit 1. Income Summary 35400 A. Niensted, Capital 21240 G. Bolen, Capital 10620 K. Sayler, Capital 3540 2. Income Summary 47200 A. Niensted, Capital K. Sayler, Capital 3. Income Summary 22420 A. Niensted, Capital K. Sayler, Capital Prepare a schedule showing the division of net income under assumption (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 Niensted Greg Bolen Krista Sayler Salary allowance $ 17700 0 0 $ Interest allowance on capital 5664 3540 2950 Total salaries 3540 2950 and interest Remaining excess/ deficiency Total division of net income $ e Textbook and Media Your answer is partially correct. Prepare a schedule showing the division of net income under assumption (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 Niensted Greg Bolen Krista Sayler Total 17700 0 0 $ $ 17700 5664 3540 2950 12154 3540 2950 $ $ $ $ (c) Your answer is partially correct. Prepare a partners' capital statement for the year under assumption (3) above. (List items that increase partners capital first.) CARLA VISTA COMPANY Partners' Capital Statement For the Year Ended December 31, 2022 Art Niensted Greg Bolen Krist Capital, January 1 $ $ $ Add : Net Income /(Loss) Less Drawings Capital, December 31 $ e Textbook and Media (c) Your answer is partially correct. Prepare a partners' capital statement for the year under assumption (3) above. (List items that increase partners capital first.) CARLA VISTA COMPANY Partners' Capital Statement For the Year Ended December 31, 2022 Art Niensted Greg Bolen Krista Sayler Total $ MULE linna $ $ $
