Problem #1 (44 Points) L. Elston $ 9,000 J. Mesa J. Yaeger Drawings $12,000 $ 4,000 Beginning Capital, $33,000 $10,000 $20,000 The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2017 has not been closed to the partners' capital accounts. Instructions 1. (a) Journalize the entry to record the division of net income for 2017 under each of the following independent assumptions. 1.(1) Net income is $40,000. Income is shared 5:2:3. (8 points) 2. (2) Net income is $30,000. Mesa and Elston are given salary allowances of $10,000 and $11,000, respectively. The remainder is shared equally. (12 points) 3. (3) Net income is $33,000. Each partner is allowed interest of 10% on beginning capital balances. Mesa is given an $18,000 salary allowance and Elston is given a salary allowance of $15,000. The remainder is shared 3:2:1. (5 points) 2. (b) Prepare a schedule showing the division of net income under assumption (3) above. (14 points) 3. (c) Prepare J. Mesa's partners' capital statement for the year under assumption (3) above. (5 points)