McGill and Smyth have capital balances on January $1$ of $$48,000$ and $$30,000,$ respectively. The partnership incomesharing 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.($If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e$.$g$.-15,000,(15,000)).$

$(2)$

Prepare a schedule showing the distribution of net income, assuming net income is $$26,000.($If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e$.$g$.-15,000,(15,000))$

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