Ken, David & Eli have formed a partnership and are interested in seeing the results of various income and loss sharing arrangements before they finalize their partnership agreement. The partners' beginning capital balances will be: Ken $100,000, David $75,000 & Eli $50,000. Ken and Eli will work for a salary allowance of $115,000 and $85,000 respectively, while David will not work there for the first few years. In addition, each partner is allowed a 10% interest allowance on their beginning capital balances with any remainder shared equally.

Instructions: Prepare a schedule indicating the amounts to be debited or credited to the capital accounts in each of the following independent situations.

A. Net income is $320,000.

B. Net income is $180,500.