AB 116 WEEK 6 PROBLEM 12-2A

AB 116 WEEK 6 At the end of its first year of operations on December 31 2014 NBS Companys accounts show the following
Partner		Drawings		Capital
Art Niensted		$22,960		$48,530
Greg Bolen		14,440		35,980
Krista Sayler		10,480		22,950

The capital balance represents each partner- initial capital investment. Therefore, net income or net loss for 2014 has not been closed to the partners’ capital accounts.
Prepare a partners’ capital statement for the year under assumption (3) above. (List items that increase partners capital first.)
Prepare a schedule showing the division of net income under assumption (3) above. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).)
Journalize the entry to record the division of net income for the year 2014 under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(1)		Net income is $30,840. Income is shared 6 : 3 : 1.
(2)		Net income is $39,990. Niensted and Bolen are given salary allowances of $14,680 and $10,850, respectively. The remainder is shared equally.
(3)		Net income is $19,260. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $14,574 salary allowance. The remainder is shared equally.