journalize the allocation of net income in each of the situations above.

Exercise 12-4 (Part Level Submission) McGill and Smyth have capital balances on January 1 of $41,000 and $34,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $25,000 for McGill and $17,000 for Smyth, (2) interest at 12% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. (a) Your answer is correct. (1) Prepare a schedule showing the distribution of net income, assuming net income is $85,000. (If an amount reduces the account balance the enter with a negative sin preceding the number or parenthesis, c. 15,000. (15,000).) DIVISION OF NET INCOME MOGIN Smyth Total Salary allowance 250001 17000 42000 Interest allowance 4920 4080 9000 Total salaries and interest 29920 21080 510001 Remaining income / deficiency 204001 13600 34000 50320 Total division of net income 85000 34680 (2) 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).) (2) Prepare a schedule showing the distribution of net income, assuming net income is $23,000. (If an amount reduces the account balance the enter with a negative preceding the number or parenthesis, .0.15,000, (15,000).) DIVISION OF NET INCOME McGill Smyth Total 25000 Salary allowance 42000 17000 Interest allowance 49200 4080 9000 Total salaries and interest 299201 21080 510001 (16800) Remaining income / deficiency (28000) (11200) 23000 9880 13120 Total division of net income Click if you would like to Show Work for this question: Open Show Work 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 man Record entries in the order presented in the previous part.) No. Account Titles and Explanation Debit Credit 1. v V 2. Work for this question: Open Show Work