P 12–3

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Refer to P 12–1.

Required: Prepare the journal entry to allocate net income to each of the partners assuming the following unrelated scenarios:

1. Net income is allocated in a fixed ratio of 5:3 (White: Green).
2. Net income is allocated by first paying each partner 10% interest on opening capital balances, then allocating salaries of $30,000 for White and $10,000 for Green, then splitting the remaining unallocated net income in a fixed ratio of 3:2 (White:Green).