MeGill and Smyth have capital balances on January $1$ of $$53,000$ and $$42,000,$ raspectivaly. The partnership income$-$sharing

agresmant provides for $[1]$ annual salaries of $$18,000$ for MeGill and $$15,000$ for $$my$ th$,(2)$ interest at $1096$ on beginning capital

balances, and $[3]$ remaining income or less to be shared $6006$ by MeCill and $40\%$ by Smyth$.$

$($a$)$

Your answer is correct.

$(1)$

Prepare a schedule showing the distribution of nat income, assuming nat income is $$78,000.($If on amount reduces the account

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

$(2)$

Prepare a schedule showing the distribution of nat income, assuming nat income is $$26,000.($If an amount reduces the account

balance then enter with a negative sign preceding the number or parenthesis, e$\mathrm{.}8,-15,000,(15,000))$

$($b$)$

Journalize the allocation of nat income in each of the situations above. $($Credit occount titles are automatically indented when amount

is entered. Do not indent manualy. Record entries in the arder presented in the previous part.$)$

No$.$ Account Titles and Explanation

Debit

Credit

$2$