The income statement for the Apple Jack Partnership for the year ended December 31, 2005, follows: APPLE JACK PARTNERSHIP Income Statement For the Year Ended December 31, 20x5 Net Sales $ 304,000 cost of Goods Sold (195.000 Gross Margin $ 109,000 Operating Expenses 33,000) Net Income $ 76,000 Additional Information for 20X5 1. Apple began the year with a capital balance of $40,800 2. Jack began the year with a capital balance of $120,000. 3. On April 1. Apple invested an additional $17,100 into the partnership 4. On August 1, Jack invested an additional $24,000 into the partnership 5. Throughout 20X5, each partner withdrew $600 per week in anticipation of partnership net income. The partners agreed that these withdrawals are not to be included in the computation of average capital balances for purposes of income distributions. Apple and Jack have agreed to distribute partnership net income according to the following plant Apple Jack Apple and Jack have agreed to distribute partnership net income according to the following plan Apple Tack 65 1. Interest on average capital balances 2. Bonus on net income before the bonus but after interest on average capitol balances 4. Residual (if positive) Residual (if negative) 3. Salaries 10% $16.00 70% sex $18,000 30% 50% Required: a. Prepare a schedule that discloses the distribution of partnership net income for 20x5 (Do not round intermediate calculations Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capitol balance should be entered with a minus sign.) Apple Jack Total % % Profit percentage (if positive) Profit percentage (if negative) Net Income Interest on average capital balances Bonus on net income before the bonus but after interest Salario 33 Next Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.) Apple Jack Total % % % % % Prolit percentage (if positive) Profit percentage (if negative) Net income Interest on average capital balances Bonus on net income before the bonus but after interest Salaries Residual income (loss) -- allocate Total b. Prepare the statement of partners' capital at December 31, 20X5 (Do not round intermediate calculations. Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be enter with a minus sign.) APPLE JACK PARTNERSHIP Statement of Partners Capital For the Year Ended December 31, 20X5 Apple Jack Total Balance January 1, 20X5 Net income distribution Balance, December 31, 20X5 c. How would your answer to part a change if all of the provisions of the income distribution plan were the same except that the salaries were $38,000 to Apple and $22,874 to Jack? (Do not round intermediate calculations. Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.) APPLE JACK PARTNERSHIP Distribution of 576,000 Net Income Apple % Jack Total sels % %% % Profit percentage (if positive) Profit percentage of negative) Net income Interest on average capital balances Bonus on net income before the bonus and after interest Salaries Residual income (loss) -- allocate Total