please step by step solution. At the end of its first year of operations on December 31, 2022, Crane Company's accounts show the following.PartnerDrawingsCapitalArt Niensted$23,920$49,920Greg Bolen11,53631,200Krista Sayler10,40026,000The 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.(a)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 manually.)2.Net income is $41,600. Niensted and Bolen are given salary allowances of $15,600 and $10,400, respectively. Theremainder is shared equally.1.Net income is $31,200. Income is shared 6:3:1.3.Net income is $19,760. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a$15,600 salary allowance. The remainder is shared equally.No. Account Titles and Explanation1.2.>>>>>>DebitCredit No. Account Titles and Explanation1.2.3.>DebitCredit>>>>> > >>>>>

CASE 1We simply allocate the net income based on the given sharing ratio. Just multiply the net…

Answered: At the end of its first year of…

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 3PB

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