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  3. capital balances are $42,000; $38,000; and $20,000

Capital balances are $42,000; $38,000; and $20,000 for partners A, B, and C, respectively. ABC...

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Accounting

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Capital balances are $42,000; $38,000; and $20,000 for partners A, B, and C, respectively. ABC partnership has net income of $90,000. Net income distribution is as follows: 1. Each partner receives interest of 5% based on their capital balances at the beginning of that year. 2. Partner B is entitled to $20,000 and Partner C is entitled to $10,000 in salaries 3. Any remaining profit/loss is split 2:3:5 between Partners A, B, and respectively. What is the journal entry to distribute the net income at year end? Round to the nearest dollar if necessary

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