E $19-3$B $($LO$4)$

$1.$ Allocation of net income:

Nolan, $$33,000$

$2$ Capital: Nolan, $$78,000$

PARTIAL FINANCIAL STATEMENTS Randy Nolan and Jill Brenton formed a

partnership on May $1,20-1.$ Nolan contributed $$50,000$ and Brenton contributed

$$25,000.$ During the year, Nolan contributed an additional $$10,000.$ The partnership

agreement states that Nolan is to receive $$15,000$ and Brenton is to receive $$50,000$

as a salary allowance. Any remaining net income is to be divided as follows: Nolan,

$40\%$ and Brenton, $60\%.$ The partnership earned net income of $$110,000$ for the fis$-$

cal year ending April $30,20-2.$ During the first year of operation, Nolan and Brenton

withdrew $$15,000$ and $$40,000,$ respectively.

Prepare the lower portion of the income statement showing the allocation of net

income between Nolan and Brenton for the fiscal year ended April $30,20-2.$

Prepare a statement of partners' equity, showing each individual partner's

equity for the fiscal year ended April $30,20-2.$