McGill and Smyth have capital balances on January $1$ of $$41,000$ and $$48,000,$ respectively. The partnership income$-$sharing

agreement provides for $(1)$ annual salaries of $$15,000$ for McGill and $$11,000$ for Smyth$,(2)$ interest at $11\%$ on beginning capital

balances, and $(3)$ remaining income or loss to be shared $70\%$ by McGill and $30\%$ by Smyth$.$

$($a$).$

Your answer is partially correct.

$(1)$

Prepare a schedule showing the distribution of net income, assuming net income is $$74,000.$ If an amount reduces the account.

bolance then enter with a negative sign preceding the number or parenthesis, e$.-15,000,(15,000).)$

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

$(2)$

Prepare a schedule showing the distribution of net income, assuming net income is $$27,000.$ If an amount reduces the account

balance then enter with a negative sign preceding the number or parenthesis, eg$.-15,000,(15,000).,$