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S. Jenson and J. Smith have a partnership that has earned a net income of $106000 this year. It is now December 31.
Problem 1: Journalize the allocation of net income to each partner based on the following scenarios:
a) Jenson and Smith divide the profits equally.
b) Jenson has a capital balance of $6000 and Smith has a capital balance of $40,000. They each get paid a salary of $5000, earn 10% interest from their capital balances, and the remainder of net income is divided equally.
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