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 Greg Bolen Krista Sayler Drawings $23,200 14,100 10,800 Capital $42,500 36,500 26,000 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 $29,800. Income is shared 6:3:1. 2. Net income is $38,300. Niensted and Bolen are given salary allowances of $14,600 and $10,200, respectively. The remainder is shared equally. 3. Net income is $19,700. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $15,500 salary allowance. The remainder is shared equally. 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 15500 15500 Interest allowance on capital 4250 3650 2600 10500 Total salaries and interest 19750 3650 2600 26000 Remaining excess/ deficiency (2100) (2100) (2100) (6300) Total division of net income 17650 1550 500 19700 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 29800 T G . Bolen, Capital 89401 A. Niensted, Capital 17880 T K. Sayler, Capital 2980 2. Income Summary 11 38300 G. Bolen, Capital 14700 1 A. Niensted, Capital 191001 T K. Sayler, Capital 4500 3. Income Summary 19700 | G. Bolen, Capital 1550 1 A. Niensted, Capital 17650 K. Sayler, Capital 500 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 42500 15500 5000 63000 ! Add Net Income / (Loss) 17650 1550 500 19700 60150 17050 5500 82700 Capital, December 31