Khalid, Dina, and Heidi are partners with capital balances of $100,000, $80,000, and

$40,000, respectively. The partners agreed to share profits and losses as follows:

Salary allowances of $5,000 to Khalid, $10,000 to Dina, and $15,000 to Heidi.

Interest allowances of 10% on beginning-of-year capital balances

Balance to be divided equally.

a. If net income for the year is $70,000, calculate each partner's share and prepare

the appropriate journal entry to close the Income Summary to the capital

accounts.

b. If there is a net income for the year of $25,000, calculate each partner's share and

prepare the appropriate journal entry to close the Income Summary to the capital

accounts.