At the end of its first year of operations on December 31, 2017, NBS Company's accounts show the following.
|
Partner
|
|
Drawings
|
|
Capital
|
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Art Niensted
|
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$23,200
|
|
$42,500
|
|
Greg Bolen
|
|
14,100
|
|
36,500
|
|
Krista Sayler
|
|
10,800
|
|
26,000
|
The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2017 has not been closed to the partners' capital accounts.
Journalize the entry to record the division of net income for the year 2017 under each of the following independent assumptions.