Q1.

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 dollar amount
Interest allowance on capital		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Total salaries and interest		enter a total of the two previous amounts		enter a total of the two previous amounts		enter a total of the two previous amounts		enter a total of the two previous amounts
Remaining excess/ deficiency		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Total division of net income		$enter a total amount		$enter a total amount		$enter a total amount		$enter a total amount

Prepare a partners capital statement for the year under the assumption (3) above. (List items that increase partners' capital first.)

SANDHILL COMPANY Partners Capital Statement choose the accounting period December 31, 2022For the Year Ended December 31, 2022For the Month Ended December 31, 2022
		Art Niensted		Greg Bolen		Krista Sayler		Total
select an opening name DrawingsExpensesNet Income / (Loss)Capital, January 1Capital, December 31RevenuesTotal ExpensesTotal Revenues		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select between addition and deduction AddLess: select an item DrawingsExpensesNet Income / (Loss)Capital, January 1Capital, December 31RevenuesTotal ExpensesTotal Revenues		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
		enter a total of the two previous amounts		enter a total of the two previous amounts		enter a total of the two previous amounts		enter a total of the two previous amounts
select between addition and deduction LessAdd: select an item DrawingsExpensesNet Income / (Loss)Capital, January 1Capital, December 31RevenuesTotal ExpensesTotal Revenues		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name DrawingsExpensesNet Income / (Loss)Capital, January 1Capital, December 31RevenuesTotal ExpensesTotal Revenues		$enter a total amount		$enter a total amount		$enter a total amount		$enter a total amount

At the end of its first year of operations on December 31, 2022, Sandhill Company's accounts show the following. Partner Drawings Capital Art Niensted Greg Bolen $27.600 11.760 12,000 $57,600 36,000 30,000 Krista Sayler The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2022 has not been closed to the partners' capital accounts. (a) Your answer is partially correct Journalize the entry to record the division of net income for the year 2022 under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. 2. Net income is $20.000. Income is shared 6:3:1. Net income is $48.000. Niensted and Bolen are given salary allowances of $18,000 and $12,000, respectively. The remainder is shared equally Net income is $22,800. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $18,000 salary allowance. The remainder is shared equally 3. No. Account Titles and Explanation Debit Credit 1. Income Summary A. Niensted. Capital G.Bolen, Capital K.Sayler, Capital 2. Income Summary A. Niensted. Capital G.Bolen, Capital Dddddddddd K. Savler. Capital 3. Income Sunway A. Niensted. Capital G.Bolen, Capital K.Sayler, Capital