PLEASE DO NOT USE PEN AND PAPER AND USE COMPUTER

4:35 iii Q Aa P12.2A Financial Statement (LO 2) At the end of its first year of operations on December 31, 2020, NBS Company's accounts show the following. Journalize divisions of net income and prepare a partners' capital statement. Art Partner Drawings Capital $23,000 $48,000 Niensted Greg 14,000 30,000 Bolen Krista 10,000 25,000 Sayler 12-36 The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2020 has not been closed to the partners capital accounts. Instructions 12-35 of 1404 4:35 Aa 0 income or net loss for 2020 has not been closed to the partners capital accounts. Instructions a. Journalize the entry to record the division of net income for the year 2020 under each of the following independent assumptions. 1. Net income is $30,000. Income is shared 6:3:1. 1. Niensted $18,000 2. Net income is $40,000. Niensted and Bolen are given salary allowances of $15,000 and $10,000, respectively. The remainder is shared equally. 2. Niensted $20,000 3. Net income is $19,000. Each partner is allowed interest of 10% on beginning capital balances. Niensted is 12-36 of 1404 4:35 iii Q Aa 0 10 equally 2. Niensted $20,000 3. Net income is $19,000. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $15,000 salary allowance. The remainder is shared equally 3. Niensted $17,700 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. c. Niensted $42,700 Prepare entries with a capital deficiency in liquidation of a partnership. 12-36 of 1404