Exercise 12-04 a-b (Part Level Submission) (Video) McGill and Smyth have capital balances on January 1 of $57,000 and $43,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $20,000 for McGill and $11,000 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. (a) Your answer has been saved and sent for grading. See Gradebook for score details. Prepare a schedule showing the distribution of net income, assuming net income is $72,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15, 000, (15,000).) DIVISION OF NET INCOME McGill Smyth Total Salary allowance 20000 11000 31000 Interest allowance 5700 4300 10000 Total salaries and interest 25700 15300 41000 Remaining income / deficiency 18600 12400 31000 Total division of net income 44300 27700 72000 (b) Journalize the allocation of net income in each of the situations above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order presented in the previous part.) No. Account Titles and Explanation Debit Credit 1. By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor (2) Prepare a schedule showing the distribution of net income, assuming net income is $27,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) DIVISION OF NET INCOME McGill Smyth Total Salary allowance 20000 11000 $ 31000 Interest allowance 5700 4300 10000 Total salaries and interest 25700 15300 41000 Remaining income / deficiency (8400) (5600) (14000) Total division of net income 17300 9700 27000 By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Exercise 12-04 a-b (Part Level Submission) (Video) McGill and Smyth have capital balances on January 1 of $57,000 and $43,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $20,000 for McGill and $11,000 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. (a) Your answer has been saved and sent for grading. See Gradebook for score details. (1) Prepare a schedule showing the distribution of net income, assuming net income is $72,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) DIVISION OF NET INCOME McGill Smyth Total Salary allowance 20000 $ 11000 31000 Interest allowance 5700 4300 10000 Total salaries and interest 25700 15300 41000 Remaining income / deficiency 18600 12400 31000 Total division of net income 44300 300 $ 27700 72000