Chat with us, powered by LiveChat Division of Net Income Schedule Partnership Accounting Project | All Paper

At the end of its first year of operations on December 31, 2018, NBCCompany’s accounts show the following:Partner DrawingsCapitalNien $ 23,000$ 48,000Bolen 14,000 30,000Sayler 10,000 25,000The capital balance represents each partner’s initial capital investment. Therefore, net income or net loss for 2018 has not been closed to the partners’ capital accounts.(The capital account balances above are therefore shown at the “beginning capital” amounts)Journalize the entry to record the division of net income for the year 2018 under each of the following independent assumptions & also prepare a “Division of Net Income Schedule” for situation (1) + (2) below:(1) Net income is $ 30,000. Income is shared 6:3:1 basis for Nien, Bolen, Sayler respectively.(2) Net income is $ 40,000. Nien’s salary allowance is $15,000. Bolen’s salary allowance is $10,000. The remainder is shared equally.(3) Net income is $ 19,000. Each partner is allowed interest of 10% on their beginning capital balances for the year. Nien’s salary allowance is $15,000. The remainder is shared equally.

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