McGill and Smyth have capital balances on January 1 of $ 40,000 and $ 43,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $ 20,000 for McGill and $ 10,000 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.

Prepare a schedule showing the distribution of net income, assuming net income is $ 24,000. (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		$ enter a dollar amount		$ enter a dollar amount		$ enter a dollar amount
Interest allowance		enter a dollar amount		enter a dollar amount		enter a dollar amount
Total salaries and interest		enter a total of the two previous amounts		enter a total of the two previous amounts		enter a total of the two previous amounts
Remaining income / deficiency		enter a dollar amount		enter a dollar amount		enter a dollar amount
Total division of net income		$ enter a total amount		$ enter a total amount		$ enter a total amount

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.)