E12.2 (L01) K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring $50,000 of personal cash to the partnership. Rosen owns land worth $15,000 and a small building worth $80,000, which she transfers to the partnership. Toso transfers to the partnership cash of $9,000, accounts re- ceivable of $32,000, and equipment worth $39,000. The partnership expects to collect $29,000 of the accounts receivable. Instructions a. Prepare the journal entries to record each of the partners' investments. b. What amount would be reported as total owners' equity immediately after the investments? E12.4 (102) McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $22,000 for McGill and $13,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. Instructions a. Prepare a schedule showing the distribution of net income, assuming net income is (1) $50,000 and (2) $36,000 b. Journalize the allocation of net income in each of the situations above