P12-2B At the end of its rst year of operations on December 31, 2017, RKC Companys accounts show the following. Partner Drawings Capital Riles $15,000 $40,000 Kinder 10,000 25,000 Crifui 5,000 15,000 Flott Company $30,000 4,000 The capital balance represents each partners initial capital investment. Therefore, net income or net loss for 2017 has not been closed to the partners capital accounts. Instructions (a) Journalize the entry to record the division of net income for 2017 under each of the independent assumptions shown below. (1) Net income is $50,000. Income is shared 5:3:2. (2) Net income is $43,000. Riles and Kinder are given salary allowances of $15,000 and $10,000, respectively. The remainder is shared equally. (3) Net income is $34,000. Each partner is allowed interest of 10% on beginning cap- ital balances. Riles is given a $20,000 salary allowance. The remainder is shared equally. (b) Prepare a schedule showing the division of net income under assumption (3) above. (c) Prepare a partners capital statement for the year under assumption (3) above.