Based on information in photo:Prepare a schedule showing the division of net income under assumption (3) abovePrepare a partner's capital statement for the year under assumption (3) above At the end of its first year of operations on December 31, 2022. Crane Company's accounts show the following.PartnerDrawingsCapitalArt Niensted$18,860$39,360Greg Bolen11,22824,600Krista Sayler8,20020,500The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2022 has not beenclosed to the partners' capital accounts.Your answer is correct.Journalize the entry to record the division of net income for the year 2022 under each of the following independent assumptions.(Credit account titles are automatically indented when amount is entered. Do not indent manualy.)1Net income is $24,600. Income is shared 6:3:1.Net income is $32,800. Niensted and Bolen are given salary allowances of $12.300 and $8.200. respectively. Theremainder is shared equally.2.Net income is $15,580. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a$12,300 salary allowance. The remainder is shared equally.3.No. Account Titles and ExplanationDebitCredit1.Income Summary24600A. Niensted, Capital14760G. Bolen, Capital7380K. Sayler, Capital24602.Income Summary32800A. Niensted, Capital16400G.Bolen, Capital12300K. Sayler, Capital41003.Income Summary15580A. Niensted, Capital14514G.Bolen, Capital736K. Sayler, Capital326

Answered: Based on information in photo: Prepare…

Based on information in photo: Prepare a schedule showing the division of net income under assumption (3) above Prepare a partner's capital statement for the year under assumption (3) above

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 9E

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