EXERCISE 15-6 Profit Distribution and Capital Statements Lo 6 Hill, Jones, and Vose have been partners throughout 2019. Their average balances for the year and their balances at the end of the year before closing the nominal accounts are as follows: Average Balances Partner Balances 12/31/19 Hill $97,500 $70,000 Jones 27,300 21,800 Vose 14,250 11,700 *Debit balance. The income for 2019 is $108,000 before charging partners' salary allowances and before payment of interest on average balances at the agreed rate of 5% per annum. Annual salary allocations are $12,000 to Hill, $9,600 to Jones, and $8,800 to Vose. The balance of income is to be allocated at the rate of 60% to Hill, 10% to Jones, and 30% to Vose. It is intended to distribute cash to the partners so that, after credits and allocations have been made as indicated in the preceding paragraph, the balances in the partners' accounts will be propor- tionate to their residual profit-sharing ratios. None of the partners is to invest additional cash, but they wish to distribute the lowest possible amount of cash. Required: Prepare a schedule of partners' accounts, showing balances at the end of 2019 before closing, the allocations of the net income for 2019, the cash distributed, and the closing balances. (AICPA adapted)