B. Langer and W. Howard have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income-sharing agreement provides for

(1) annual salaries of $20,000 for Langer and $12,000 for Howard,
(2) interest at 10% on beginning capital balances, and
(3) remaining income or loss to be shared 70% by Langer and 30% by Howard.

Instructions
  (a) Prepare a schedule showing the distribution of net income, assuming net income is

(1) $55,000 and
(2) $30,000.

  (b) Journalize the allocation of net income in each of the situations above.