1.The following are monthly salary allowances: Stone $2,500($30,000 annually) and Mills $2000 (24,000 annually). Any net income remaining after the salary allowances is to be divided equally. Assume also that the net income for the year is $75,000. Divide the net income for the partners and show journal entry to close the net income.

2. The monthly salaries are the same. Interst of 12% on each partner's capital balance on January 1. Any remaining net income divide equally between the partners. Stone had a credit balance of $80,000 in her capital account on January 1 of the current fiscal year, and Mills had a credit balance of $60,000 in her capital account. Divide the net income for the partners and show journal entry to close the net income.

3. Assume the same salary and interest allowances as in the preceding example but that the net income is $50,000. Divide the net income for the partners and show journal entry to close the net income