Part 2

McGill and Smyth have capital balances on January 1 of $55,000 and $47,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $15,000 for McGill and $13,000 for Smyth, (2) interest at 11% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth. repare a schedule showing the distribution of net income, assuming net income is $67,000. (If an amount reduces the account palance then enter with a negative sign preceding the number or parenthesis, e.g. 15,000,(15,000).) stion 1 of 2 0/5: DIVISIONOF NET INCOME Salary allowance Interest allowance Total salaries and interest Remaining income / deficiency Total division of net income $ Total $ $ $ Journalize the allocation of net income in each of the situations above. (Credit account titles are automatically indented when amour is entered. Do not indent manually. Record entries in the order presented in the previous part.) McGill and Smyth have capital balances on January 1 of $55,000 and $47,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $15,000 for McGill and $13,000 for Smyth, (2) interest at 11% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth. (a) Your answer is incorrect. (1) Prepare a schedule showing the distribution of net income, assuming net income is $67,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. 15,000,(15,000).) Prepare a schedule showing the distribution of net income, assuming net income is $67,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. 15,000,(15,000).) Prepare a schedule showing the distribution of net income, assuming net income is $23,000. If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. 15,000,(15,000).) 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.) Prepare the partners' capital statement for the year. (List items that increase partners' capital first.) Prepare the owners' equity section of the balance sheet at December 31, 2022