Entries for Allocation of Net Income

Danny Spurlock and Tracy Wilson decided to form a partnership on July $1,20-1.$ Spurlock invested $$80,000$ and Wilson invested $$20,000.$ For the fiscal

year ended June $30,20-2,$ a net income of $$79,000$ was earned. Determine the amount of net income that Spurlock and Wilson would receive under

each of the following independent assumptions:

Income to be allocated

The remaining net income is to be divided as follows: Spurlock, $75\%$ and Wilson, $25\%.$