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The Income statement for the Apple$-$Jack Partnership for the year ended December $31,20$X$5,$ follows:

Additlonal Information for $205$

Apple began the year with a capital balance of $$45,900.$

Jack began the year with a capital balance of $$120,000.$

On April $1,$ Apple Invested an additional $$17,100$ into the partnership.

On August $1,$ Jack Invested an additional $$25,000$ into the partnership.

Throughout $205,$ each partner withdrew $$500$ per week In anticipation of partnership net income. The partners agreed that these withdrawals are not to be Included in the computation of average capital balances for purposes of income distributions.

Apple and Jack have agreed to distribute partnership net income according to the following plan:

Interest on average capital balances

Apple

Jack

Bonus on net income before the bonus but after interest on average capital balances

$6\%$

$6\%$

Salaries

$16\%$

Residual $($if positive$)$

$$16,000$

$$18,000$

Residual $($if negative$)$

$76\%$

$50\%$

$30\%50\%$

Requlred:

a$.$ Prepare a schedule that discloses the distribution of partnership net income for $205.$

b$.$ Prepare the statement of partners' capital at December $31,205.$

c$.$ How would your answer to part a change If all of the provisions of the income distribution plan were the same except that the salarles were $$32,000$ to Apple and $$31,206$ to Jack?

Complete this question by entering your answers in the tabs below.

Required $A$

Required $C$

Prepare a schedule that discloses the distribution of partnership net income for $205.$

Note: Do not round intermediate calculations, Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.

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