Exercise 12-04 a-b (Video) McGil and Smyth have capital balances on January 1 of $42,000 and $38,000 espectively. The partnership income-sharing agreement provides for 1 annual salaries of $16,000 for McGill and10,000 for S yth capital balances, and (3) remaining income or loss to be shared 70% by McGll and 30% by Smyth. 2 interest at 11% on beginning Prepare a schedule showing the distribution of net income, assuming net income is $83,000. (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 Interest allowance Total salaries and interest Remaining income deficiency Total division of net income Prepare a schedule showing the distribution of net income, assuming net income is $23,000. (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 Interest allowance Total salaries and interest Remaining income deficiency Total division of net income LINK TO TEXT