McGill and Smyth have capital balances on January 1 of $56,000 and $36,000, respectively. The partnership income sharing agreement provides for (1) annual salaries of $24,000 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. (b) Journalize the allocation of net income in each of the situations above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order presented in the previous part) (a) (1) Prepare a schedule showing the distribution of net income, assuming net income is $90,000. If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, eg.-15,000, (15,000)) Salary allowance Interest allowance Total salaries and interest Remaining income/ deficiency Total division of net income DIVISION OF NET INCOME McGill Smyth Total (2) Prepare a schedule showing the distribution of net income, assuming net income is $30,000. If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, eg.-15,000, (15,000).) Salary allowance Interest allowance Total salaries and interest Remaining income/ deficiency Total division of net income DIVISION OF NET INCOME McGill Smyth $ Total $ No. Account Titles and Explanation 1. Debit Credit