McGill and Smyth have capital balances on January 1 of $54,000 and $37,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $20,000 for McGill and $12,000 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.

Weygandt, Accounting Principles, 13e BTA 111/112 (001) CALCULATOR MESSAGE MY INSTRUCTOR STANDARD VIEW PRINTER VERSION BACK Prepare a schedule showing the distrbution of net income, assuming net income is sG5,000. (If an anmount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) DIVISION OF NET INCOME Total Salary alowance Interect allowance Total salaries and interest Remaining incomedeficiency Totol division of net income Prepare a schedule showing the distrbution of net income, assuming net income is s20,000. (If an anmount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (1S,000).) DIVISION OF NET INCOME McGill Total Salary alowance Interest allowance Total salaries and interest Remaining income deficiency Total division of net income LINK TO TEXT Jounalize the allocation of net income in each of the situations above. (Credit account tities are automatically indented when amount is entered. Do not indent manually. Record entries in the order presented in the previous part.) No. Account Titles and Explanation Debit Credit