McGill and Smyth have capital balances on January 1 of $52,000and $47,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $17,400for McGill and $12,800for Smyth, (2) interest at10% on beginning capital balances, and (3) remaining income or loss to be shared60% by McGill and40% by Smyth.

1) How to create a schedule showing the distribution of net income, assuming net income is $85,000?

(2) How do I create a schedule showing the distribution of net income, assuming net income is $29,400?

3) 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.)

* Question 12 McGill and Smyth have capital balances on January 1 of $52,000 and $47,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $17,400 for McGill and $12,800 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. (1) Prepare a schedule showing the distribution of net income, assuming net income is $85,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) DIVISION OF NET INCOME McGill Smyth $ Total $ $ $ $ Salary allowance Interest allowance Total salaries and interest Remaining income / deficiency $ Total division of net income (2) Prepare a schedule showing the distribution of net income, assuming net income is $29,400. (If an amount 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 McGill Smyth $ Total $ $ $ $ Salary allowance Interest allowance Total salaries and interest Remaining income / deficiency $ Total division of net income 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.) No. Account Titles and Explanation Debit Credit 1 2