E12-4 (a1 & a2) F. Calvert and G. Powers have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $20,000 for Calvert and $12,000 for Powers, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by Calvert and 40% by Powers. Prepare schedule showing distribution of net income and closing entry. 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