McGill and Smyth have capital balances on January 1 of $48,000 and $30,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $22,000 for McGill and $18,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth.

(1) Prepare a schedule showing the distribution of net income, assuming net income is $71,000

(2) Prepare a schedule showing the distribution of net income, assuming net income is $26,000.

(3)Journalize the allocation of net income in each of the situations above