B. Pedigo and W. Vernon have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $20,000 for Pedigo and $12,000 for Vernon, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by Pedigo and 30% by Vernon. Prepare a schedule showing the distribution of net income, assuming net income is $55,000. Prepare a schedule showing the distribution of net income, assuming net income is $30,000.Journalize the allocation of net income assuming; 1. Net income is $55,000 2. Net income is $30,000 (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 1. 2.