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Chapter 14 Eerdepof- Adobe Acrobat Reader DC File Row Window Help Home Tools Chapter 14 Exercise 2/5 200% cash withdrawals, and the December 31 closing of the Income Summary and withdrawals accounts. 2. Determine the balances of the partners' capital accounts as of the end of 2011. Newton and Scampi began a partnership by investing $52,000 and 578,000, respectively. During its first year, the partnership recorded net income of $180,000. Required Prepare calculations showing how the income should be allocated to the partners under each of the following plans for sharing net incomes and losses: a. The partners failed to agree on a method of sharing income. b. The partners agreed to share incomes and losses in proportion to their initial investments. c. The partners agreed to share income by allowing an $85,000 per year salary allowance to Newton, a $65,000 per year salary allowance to Scampi, 10% interest on their initial investments, and the balance equally. Lowe and Bentley began a partnership by investing $80,000 and $140,000, respectively. They agreed to share net incomes and losses by allowing yearly salary allowances of $85,000 to Lowe non to Rentley, 15% interest allowances on their investments, and the balance 3:2