If the partners in Concept Check 2 have the following agreement, please calculate the total salary and interest allowances:

1. Salary Allowance: Smith, $8,600; Stapleson, $6,900; and Menard, $5,800.

2. 6% interest on capital investments.

Concept check 2

John Smith, Norman Stapleson, and Dakota Menard invested $12,000, $7,500, and $10,500, respectively. At the end of the first year, the company’s net income was $90,000. Assuming no agreement was reached on how to share net income, prepare a journal entry at closing to allocate net income.