Division of Net Income 2. John Smith, Norman Stapleson, and Dakota Menard invested $12,000, $7,500, and $10,500, respectively. At the end of the first year, the company's net income was $90,000. Assuming no agreement was reached on how to share net income, prepare a journal entry at closing to allocate net income. Division of Net Income Based on Beginning Capital Balances 3. If the partners in Concept Check 2 share net income based on their beginning capital investments, what would be the journal entry at closing to allocate net income? Calculating Total Salary and Interest Allowances 4. If the partners in Concept Check 2 have the following agreement, please calculate the total salary and interest allowances: a. Salary Allowance: Smith, $8,600; Stapleson, $6,900; and Menard, $5,800. b. 6% interest on capital investments.