Business partnersBaliva, Masi, and Romalati have a partnership agreement that outlines a detailed formula for sharing profits and losses. Baliva, Masi, and Romalati earn annual salaries of $60 000, $70 000, and $80 000 respectively. They also earn a fixed percentage of interest on their capital balances which are $50 000, $50 000, and $70 000 respectively. Any remaining income is allocated using an income ratio of 30%, 30% and 40% respectively. Calculate the net income allocation and record the journal entry under the following unrelated situations:

(a) net income of $400 000, and 7% on capital balances

(b) net income of $50 000, and 5% on capital balances.

Numbers #618 X14 9 0 7 75% [ B 16:40 QE al U4A3 83% v Ev T D V E M E + Question 1 Question 2 General Journal Page CALCULATIONS Date Particulars Debit Credit Scenario (a) Baliva Masi Romalati Total Question 2 chatIMG75.jp a ) Balance in Capital account, January 1 eg Income Ratio Net Income Income Distribution Salary Interest Allowance b) Net Income allocated PRIOR to ratio application PDF X 1 Net Income to be allocated based on income ratio Share of income based on income ratio Total allocation of net income Scenario (b) Baliva Masi Romalati A Total Balance in Capital account, January 1 Income Rati Net Income Income Distribution Salary E- Interest Allowance Net Income allocated PRIOR to ratio application Net Income to be allocated based on income Share of income based on income ratio counting.unit Total allocation of net income activity. 4 U4A5 sign...8258 counting unit activity 5 U4A3 counting unit 3 activity 2