The income statement for the Apple-Jack Partnership for the year ended December 31, 20X5, follows:

APPLE-JACK PARTNERSHIP Income Statement For the Year Ended December 31, 20X5
Net Sales	$	305,000
Cost of Goods Sold		(194,000	)
Gross Margin	$	111,000
Operating Expenses		(39,000	)
Net Income	$	72,000

Additional Information for 20X5

1. Apple began the year with a capital balance of $43,200.
2. Jack began the year with a capital balance of $116,000.
3. On April 1, Apple invested an additional $23,400 into the partnership.
4. On August 1, Jack invested an additional $23,000 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:

The Income statement for the Apple Jack Partnership for the year ended December 31, 20X5, follows: APPLE- JACK PARTNERSHIP Income Statement For the Year Ended December 31, 20x5 Net Sales $ 305, eee Cost of Goods Sold (194,000) Gross Margin $ 111, eee Operating Expenses (39,000) Net Income $ 72,000 Additional Information for 20X5 1. Apple began the year with a capital balance of $43,200. 2. Jack began the year with a capital balance of $116,000. 3. On April 1, Apple Invested an additional $23,400 Into the partnership 4. On August 1, Jack Invested an additional $23,000 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: Apple Jack 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) 10% $18,eee 70% 50% $ 20,wee 30% 50% Required: 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.) Apple Jack Total % 96 0 % % 096 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 s ||0|00|0|0|0 | Salaries s Residual income (loss) allocate Total 69 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 slgn.) APPLE - JACK PARTNERSHIP 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 slgn.) APPLE - JACK PARTNERSHIP Statement of Partners' Capital For the Year Ended December 31, 20X5 Apple Jack Total Balance, January 1, 20X5 s 0 0 Net income distribution s 0 s 0 s 0 0 Balance, December 31, 20X5 S 0 S 0 S 0 c. How would your answer to part a change of all of the provisions of the Income distribution plan were the same except that the salaries were $33,000 to Apple and $24,098 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 $72,000 Net Income Apple Jack Total 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 $33,000 to Apple and $24,098 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 $72,000 Net Income Apple Jack Total 96 96 0 % Profit percentage (if positive) Profit percentage (if negative) Net income % % 0 % Interest on average capital balances s Bonus on net income before the bonus and after interest s olololololololo Salaries S Residual income (loss) allocate Total S 0 s 0 $