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Coburn (beginning capital, $57,000) and Webb (beginning capital $91,000) are partners. During 2020, the partnership earned...

Coburn (beginning capital, $57,000) and Webb (beginning capital $91,000) are partners. During 2020, the partnership earned net income of $72,000, and Coburn made drawings of $16,000 while Webb made drawings of $26,000.

c) Assume the partnership income-sharing agreement calls for income to be divided with a salary of $35,000 to Coburn and $30,000 to Webb, interest of 11% on beginning capital, and the remainder divided 50%–50%. Prepare the journal entry to record the allocation of net income.

d) Compute the partners’ ending capital balances under the assumption in part (c) above.

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