Problem 12-02A a-c (Part Level Submission) (Video) At the end of its first year of operations on December 31, 2020, Sheridan Companys accounts show the following. Partner Drawings Capital Art Niensted $23,400 $42,100 Greg Bolen 14,500 30,500 Krista Sayler 10,000 22,500 The capital balance represents each partners initial capital investment. Therefore, net income or net loss for 2020 has not been closed to the partners capital accounts. To record the division of net income for the year 2020 under each of the following independent assumptions. 1. Net income is $29,800. Income is shared 6:3:1. 2. Net income is $38,500. Niensted and Bolen are given salary allowances of $14,500 and $10,500, respectively. The remainder is shared equally. 3. Net income is $19,100. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $15,590 salary allowance. The remainder is shared equally. Collapse question part (a) Prepare a schedule showing the division of net income under assumption (3) above. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).) DIVISION OF NET INCOME Art Niensted Greg Bolen Krista Sayler Total Salary allowance $enter a dollar amount enter a dollar amount enter a dollar amount $enter a total for the row Interest allowance on capital enter a dollar amount enter a dollar amount enter a dollar amount enter a total for the row Total salaries and interest enter a subtotal of the two previous amounts enter a subtotal of the two previous amounts enter a subtotal of the two previous amounts enter a subtotal of the two previous amounts Remaining excess/ deficiency enter a dollar amount enter a dollar amount enter a dollar amount enter a total for the row Total division of net income $enter a total amount $enter a total amount $enter a total amount $enter a total amount

(b) Journalize the entry to record the division of net income for the year 2020 under each of the above independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. select an account title to record the division of net income under the first assumption enter a debit amount enter a credit amount select an account title to record the division of net income under the first assumption enter a debit amount enter a credit amount select an account title to record the division of net income under the first assumption enter a debit amount enter a credit amount select an account title to record the division of net income under the first assumption enter a debit amount enter a credit amount 2. select an account title to record the division of net income under the second assumption enter a debit amount enter a credit amount select an account title to record the division of net income under the second assumption enter a debit amount enter a credit amount select an account title to record the division of net income under the second assumption enter a debit amount enter a credit amount select an account title to record the division of net income under the second assumption enter a debit amount enter a credit amount 3. select an account title to record the division of net income under the third assumption enter a debit amount enter a credit amount select an account title to record the division of net income under the third assumption enter a debit amount enter a credit amount select an account title to record the division of net income under the third assumption enter a debit amount enter a credit amount select an account title to record the division of net income under the third assumption enter a debit amount enter a credit amount