Problem #2. Dividing Net Income and Loss Among Partners.

M. Gomez (beginning capital $60,000) and I. Inez (beginning capital $70,000) are partners. During 2022 the partnership earned net income of $85,000. Assume the partnership income-sharing agreement calls for income to be divided with a salary of $33,000 to Gomez and $22,000 to Inez, interest of 8% on beginning capital, and the remainder divided 65%35%. Prepare the schedule and journal entry to record the allocation of net income.