The income statement for the Apple Jack Partnership for the year ended December 31, 20X5, follows APPLE BACK PARTNERSHIP Income Statement For the Year Ended December 31 2005 Net Sales $ 319.000 Cost of Goods Sold 190.000) Gross Hargin $ 123,000 Operating Expenses (39,000) Net Income $ 34,000 Additional Information for 20X5 1. Apple began the year with a capital balance of $48,300 2. Jack began the year with a capital balance of $112.000 3. On April 1. Apple invested an additional $21600 into the partnership 4. On August 1, Jack invested an additional $21,000 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 plan Sack 6% 1. Interest on average capital balances 2. Bonus on net income before the bonus but after interest on average capital balances 3. Salaries 4. Residual (if positive) Residual (if negative) Apple 6% 10% $19,000 70% 50% $21,000 301 505 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 capital balance should be entered with a minus sign.) 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 capital balonce 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 01% 0 % % 0 $ Bonus on net income before the bonus but after interest 0 $ Salaries 0 $ Residual income (loss) -allocate Total 0 0 $ 0 $ 0 $ 0 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 entered 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 ol 0 0 0 0 S 0 $ 0 $ Balance, December 31, 20X5 $ 0 $ 0 $ 0 c. How would your answer to part a change fall of the provisions of the income distribution plan were the same except that the salaries were $32,000 to Apple and $35,976 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 $34.000 Net Income Apple % % Jack Total % % 01% 0 % Profit percentage of positive) Profit percentage of negative) Net Income Interest on average capital balances 0 0 5 Bonus on net income before the bonus and after interest 0 0 Salaries 0 $ 0 Residual income doss) -allocate Total $ $ 0 $ 0