KO & KA form a partnership with initial investments of $100,000 and $200,000 respectively. Their agreement calls for a salary to KO of $45,000 and a salary to KA for $47,000. Each partner is to receive an interest of 10% on their initial investment and KA is to receive a bonus of 10% of net income after the bonus is subtracted. Each partner will also receive a 2 % additional dividend based on its weighted average capital balance. The following entries were made into their capital accounts. They agree that the remaining profit or loss is to be divided equally. If the net income for the period is $330,000, show the distribution to each partner

KO : Debits Credits

1/1100,000 (Cr)

7/150,000 (Dr)

10/170,000 (Cr)

KA:

1/1200,000 (Cr)

5/180,000 (Dr)

12/140,000 (Cr)