McGill and Smyth have capital balances on January 1 of $ 41,000 and $ 34,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $ 25,000 for McGill and $ 17,000 for Smyth, (2) interest at 12% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth (a) Your answer is correct (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. s. 15,000,(15,000).) DIVISION OF NET INCOME McGill Smyth Total Salary allowance 17 5 Interest allowance Total salaries and interest 5100 Remaining income deficiency 20.400 13,600 34000 Total division of net income 50320 $ 34.680 $ 85.000 (2) Prepare a schedule showing the distribution of net income, assuming net income is $ 23,000. (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 $ 25.000 $ 17.000 427000 Interest allowance 4.920 090 Total salaries and interest 29.9.20 STOGO Remaining income deficiency 10000 1200 200 Total division of net income 13150 9380 eTextbook and Media Attempts: 1 of 3 used (6) 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 Journanze ut docation OTTIECMUCH Eaun urte ULUN AVUVE. ICICUI ULLUT tre ure uut muutuny 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. 24