Wildhorse Company reported net income of $81,800. The partnership agreement provides for salaries of $21,400 to Miley and $15,800 to Guthrie. They divide the remainder 40% to Miley and 60% to Guthrie.

(a1)

Calculate division of net income.

		Miley		Guthrie
Division of net income		$enter a dollar amount		$enter a dollar amount

(a2)

Prepare the closing entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
select an account title Accounts PayableAccounts ReceivableAccumulated Depreciation - EquipmentAllowance for Doubtful AccountsCashDepreciation ExpenseEquipmentGain on RealizationGuthrie, CapitalGuthrie, DrawingsIncome SummaryInventoryLoss on RealizationMiley, CapitalMiley, DrawingsNet (Loss) IncomeNotes PayableSalaries Expense	enter a debit amount	enter a credit amount
select an account title Accounts PayableAccounts ReceivableAccumulated Depreciation - EquipmentAllowance for Doubtful AccountsCashDepreciation ExpenseEquipmentGain on RealizationGuthrie, CapitalGuthrie, DrawingsIncome SummaryInventoryLoss on RealizationMiley, CapitalMiley, DrawingsNet (Loss) IncomeNotes PayableSalaries Expense	enter a debit amount	enter a credit amount
select an account title Guthrie, DrawingsEquipmentMiley, DrawingsAllowance for Doubtful AccountsGuthrie, CapitalCashInventoryNet (Loss) IncomeDepreciation ExpenseLoss on RealizationAccounts ReceivableGain on RealizationNotes PayableMiley, CapitalAccounts PayableSalaries ExpenseAccumulated Depreciation - EquipmentIncome Summary	enter a debit amount	enter a credit amount