On January 1, 2016, Betty, Candice, and Frank had capital balances of 50,000; 105,000; and19,000 in their partnership. In 2016, the partner ship reported net income of $41,000. None of the partners withdrew any assets in 2016. The partnership agreed to share profits and losses as follows:

A. A monthly salary allowance of 2100; 26,000; and 4100 to Betty, Candice, and Frank.

B. An annual interst allowance of 11% to each partner based on her/his capital balance at the beginning of the year.

C. Any remaining balance to be shared equally.

Required:

1. A schedule to allocate the 2016 net income to partners.

2. Assume all the income statement accounts for 2016 have been closed to the income summary account. Prepare the entry to record the division of the 2016 net income.