James, Keller, and Rivers have the following capital balances; $$68,000,$ $$75,000$ and

$$95,000$ respectively. Because of a cash shortage James invests an additional $$15,000$

on June $1$st$.$ Rivers withdraw $$10,000$ on october $1$st Each partner made Drawings for

$$1,000$ per month. James, Keller, and Rivers receive a salary of $$15,000,$ $$20,000$ and

$$25,000,$ respectively, for work done during the year. Each partner receives interest of

$12\%$ on that partner$$s monthly weighted average capital balance without regard to

normal drawings. Any remaining profits are split $20\%,30\%,$ and $50\%$ respectively. The

net income for the year is $$50,000.$ What are the ending capital balances for each

partner?

Required

$1.$ Prepare schedule of net income allocation

$2.$ Prepare a SStatatement of Partners Capital

$3.$ Prepare a Closing entries