Dividing Partnership Net Income Required: Steve Prince and Chelsy Stevens formed a partnership, dividing income as follows: 1. Annual salary allowance to Prince of $107,520. 2. Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to Prince and Stevens, 1:2. Prince and Stevens had $99,000 and $81,000, respectively, in their January 1 capital balances. Net income for the year was $192,000. How much is distributed to Prince and Stevens? Note: Compute partnership share. Prince: $ 150,300 x Stevens: $ 41,700 X Feedback Check My Work Set up a column for each partner and a total column. The amount of net income that should be distributed to each partner should include: the partner's salary allowance, the interest on the partner's capital balance, and any remaining income divided based on the partnership agreement. If the net income is less than the total of the salary and interest allowances, then the remaining net income to divide is a negative amount, as though it were a net loss. Revaluing and Contributing Assets to a Partnership Demarco Lee invested $59,000 in the Camden & Sayler partnership for ownership equity of $59,000. Prior to the investment, equipment was revalued to a market value of $357,000 from a book value of $264,000. Kevin Camden and Chloe Sayler share net income in a 1:3 ratio. Required: a. Provide the journal entry for the revaluation of equipment. For a compound transaction, if an amount box does not require an entry, leave it blank. Equipment Kevin Camden, Capital Chloe Sayler, Capital 93,000 b. Provide the journal entry to admit Lee. Cash 59,000 Demarco Lee, Capital 59,000 Liquidating Partnerships Prior to liquidating their partnership, Fowler and Brooks had capital accounts of $66,000 and $95,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $141,000. The partnership had $5,000 of liabilities. Fowler and Brooks share income and losses equally. Determine the amount received by Fowler as a final distribution from liquidation of the partnership Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Jolly and Russo had capital accounts of $10,000 and $41,000, respectively. The partnership assets were sold for $21,000. The partnership had no liabilities. Jolly and Russo share income and losses equally. Required: a. Determine the amount of Jolly's deficiency. $ b. Determine the amount distributed to Russo, assuming Jolly is unable to satisfy the deficiency