Problem 12-02A a-c (Video) At the end of its first year of operations on December 31, 2020, Cullumber Company's accounts show the following. Partner Art Niensted Drawings $23,300 13,600 11,500 Capital $48,300 37,000 30,000 Greg Bolen Krista Sayler 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. To record the division of net income for the year 2020 under each of the following independent assumptions. 1. Net income is $31,600. Income is shared 6:3:1. 2. Net income is $40,900. Niensted and Bolen are given salary allowances of $14,900 and $10,400, respectively. The remainder is shared equally. 3. Net income is $19,000. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $13,770 salary allowance. The remainder is shared equally. 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. Income Summary 31600 A. Niensted, Capital 18960 G. Bolen, Capital 9480 K. Sayler, Capital 3160 2. Income Summary 40900 A. Niensted, Capital 20100 G. Bolen, Capital 15600 K. Sayler, Capital 5200 3. Income Summary 15600 A. Niensted, Capital 5200 G. Bolen, Capital 5200 K. Sayler, Capital 5200 Prepare a partners' capital statement for the year under assumption (3) above. (List items that increase partners capital first.) CULLUMBER COMPANY Partners' Capital Statement For the Year Ended December 31, 2020 Art Niensted Greg Bolen Krista Sayler Total Capital, January 1 48300 37000 30000 115300 x X x X X Less V Drawings 23300 13600 11500 48400 X 25500 23400 18500 67400 X X X X x Add v Net Income / (Loss) 16500 1600 900 19000 41500 25000 Capital, December 31 v 19400 85900 Click if you would like to Show Work for this question: Open Show Work