Scott Badger and Maxine Giesen are partners in a business. On December 31 of the current year, the partners’ equities are Scott, \($60,000.00\) and Maxine, \($90,000.00.\) The net income for the year is \($60,000.00.\) A work sheet for calculating distribution of partners’ earnings, a cash payments journal, and a general journal are provided in the Working Papers. Your instructor will guide you through the following examples.

1. For each of the following independent cases, calculate how the \($60,000.00\) net income will be distributed to the two partners.

a. Each partner receives a fixed percentage of 50% of net income.

b. Each partner receives a percentage of net income based on the percentage of total equity.

c. Each partner receives 10% interest on equity. The partners share remaining net income equally.

d. Scott receives 8% interest on equity and a salary of \($18,000.00.\) Maxine receives 8% interest on equity and a salary of \($22,500.00.\) The partners share remaining net income equally.

2. Record the following transactions in the appropriate journal.

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June 20, 20- July 1, 20-- Scott Badger, partner, withdrew cash for personal use, $750.00. Check No. 133. Maxine Giesen, partner, withdrew office supplies for personal use, $45.00. Memorandum No. 23.