Net Sales APPLE-JACK PARTNERSHIP Income Statement For the Year Ended December 31, 20X5 Cost of Goods Sold Gross Margin Operating Expenses Net Income $ 319,000 (196,000) $ 123,000 (38,000) $ 85,000 Additional Information for 20X5 1. Apple began the year with a capital balance of $45,000. 2. Jack began the year with a capital balance of $120,000. 3. On April 1, Apple invested an additional $15,300 into the partnership. 4. On August 1, Jack invested an additional $24,000 into the partnership. 5. Throughout 20X5, each partner withdrew $500 per week in anticipation of partnership net income. The partners agreed that these withdrawals are not to be included in the computation of average capital balances for purposes of income distributions. Apple and Jack have agreed to distribute partnership net income according to the following plan: 1. Interest on average capital balances 2. Bonus on net income before the bonus but after interest on average capital balances 3. Salaries 4. Residual (if positive) Residual (if negative) Apple Jack 6% 6% 10% $ 18,000 $ 20,000 70% 50% 30% 50% Required A Required B Required C Prepare a schedule that discloses the distribution of partnership net income for 20X5. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign. Profit percentage (if positive) Profit percentage (if negative) Net income Interest on average capital balances Bonus on net income before the bonus but after interest Salaries Residual income (loss)- allocate Total Apple Jack % % % $ 0 $ 0 EA $ GA $ Total 0% 0% 0 $ 59 0 0 EA $ 0 0 0 0 0 Prepare the statement of partners' capital at December 31, 20X5. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign. APPLE JACK PARTNERSHIP Statement of Partners' Capital For the Year Ended December 31, 20X5 Apple Jack Balance, January 1, 20X5 Net income distribution 69 Total 0 0 0 $ 0 $ 0 Balance, December 31, 20X5 $ 0 $ 0 $ 69 69 0 0 0 How would your answer to part a change if all of the provisions of the income distribution plan were the same except that the salaries were $34,000 to Apple and $34,830 to Jack? Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign. Profit percentage (if positive) Profit percentage (if negative) Net income Interest on average capital balances - APPLE JACK PARTNERSHIP Distribution of $85,000 Net Income Bonus on net income before the bonus and after interest Salaries Residual income (loss)-allocate Total Apple Jack Total % % 0% % % 0% 69 $ 0 69 0 EA 0 0 $ 0 0 $ 0 0 0 $ 0 Show less