McGill and Smyth have capital balances on January 1 of $58,000 and 548,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $21,000 for McGill and $15,800 for Smyth, (2) interest at 12% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth. Your answer is partially correct. Try again. Prepare a schedule showing the distribution of net income, assuming net income is $81,700. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) Prepare a schedule showing the distribution of net income, assuming net income is $25,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) Your answer is partially correct. Try again. Journalize the allocation of net income in each of the situations a solve. (Credit account titles arc automatically indented when amount is entered. Do not indent manually. Record entries in the order presented in the previous part.)