McGill and Smyth have capital balances on January $1$ of $$54,000$ and $$37,000,$ respectively. The partnership income$-$sharing agreement provides for $(1)$ annual salaries of $$20,000$ for McGill and $$12,000$ 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$.$

$($a$)$

$($b$)$

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

$1.$

$2.$