Instructions: Prepare the allocation of income by partners in each case. Prepare the breakdown of income in T Accounts of the partners

Susan Otero and Kendra Villas opened an advertising business as a partnership. They have the following agreements. Each case is independent of the other. You must prepare T-accounts for the capital of each partner for each case. 60 points. (15 pts each case)

Case #1 Income of $175,000 a) Salaries of $25,000 each b) They receive 10% interest on the invested capital. Otero capital is $50,000 and Villas capital is $25,000. c) Remaining 60% for Otero and 40% for Villas. d) For T-account, Otero withdrew $10,000 for personal use

Case #2 Income of $95,000 a) $15,000 Productivity Bond for Villas b) Salaries for Villas of $20,000 c) Otero receives a 15% income productivity bonus d) 20% interest on the invested capital. Otero capital is $75,000 and Villas capital is $80,000. e) Remaining income in equal parts.