Partnerships Summers and Winters formed a partnership on January 1. Summers contributed $90,000 cash and equipment with a market value of $60,000. Winters contributed $30,000 cash and inventory with a market value of $80,000. Prepare the journal entry to record the partners' contributions to the partnership Date Account Debit Credit Partnership net income for year 1 and year 2 was $75,000 and $120,000, respectively. 1. Determine each partner's share of the net income for each year, assuming each of the following independent situations: (a) Income is divided equally (b) Income is divided based on a 2:1 ratio (Summers: Winters). (c) Income is divided based on the ratio of the partners' original capital investments (d) Income is divided based on interest allowance of 12% on the original capital investments; salary allowance to Summers of $30,000 and Winters of $25,000; and the remainder to be divided equally! Use the worksheets on the following page to calculate net income allocated to each partner. Summers and Winters Partnership - Allocation of Income a. Summers Total Winters Year 1 Total Income $75,000 Summers Winters Total a. Year 2 Total Income $120,000 Total Winters Summers b. Year 1 Total Income $75,000 Summers Winters Total b. Year 2 Total Income $120.000 C. Summers Total Winters Year 1 Total Income $75,000 Summers Winters Total C. Year 2 Total Income $120,000 d. Year 1 Summers Winters Total Total Income $75,000 d. Year 2 Summers Winters Total Total Income $120,000