The capital balance represents each partner's initial capital inwestment. Therefore, net income or net loss for $2022$ has not been

closed to the partners' capital accounts.

$($a$)$

Your answer is 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

Net income is $$28,200.$ Income is shared $6$:$3-1.$

Net income is $$37,600.$ Niensted and Bolen are given salary allowances of $$14,100$ and $$9,400,$ respectively. The

remainder is shared equally.

Net income is $$17,860.$ Each partner is allowed interest of $10\%$ on beginning capital balances. Niensted is given a

$$14,100$ salary allowance The remainder is shared equally.

$($b$)$

Prepare a schedule showing the division of net income under assumption $(3)$ above. $($lf an amount reduces the account balance then

enter with a negative sign preceding the number $28\mathrm{.}15,000$ or parathesis e $.(15,000))$

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