Problem 12-2A At the end of its first year of operations on December 31, 2017, NBS Companys accounts show the following. Partner Drawings Capital Art Niensted $23,300 $48,300 Greg Bolen 13,600 37,000 Krista Sayler 11,500 30,000 The capital balance represents each partners initial capital investment. Therefore, net income or net loss for 2017 has not been closed to the partners capital accounts. Your answer is partially correct. Try again. Journalize the entry to record the division of net income for the year 2017 under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (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. No. Account Titles and Explanation Debit Credit 1. 2. 3. Link to Text Your answer is partially correct. Try again. 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 $ $ Interest allowance on capital Total salaries and interest Remaining deficiency Total division of net income $ $ $ $ Link to Text Your answer is incorrect. Try again. Prepare a partners capital statement for the year under assumption (3) above. (List items that increase partners capital first.) NBS COMPANY Partners Capital Statement Art Niensted Greg Bolen Krista Sayler Total $ $ $ $ : : $ $ $ $ Link to Text Question Attempts: Unlimited Save for later Submit Answer