Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 4

Maria Bell and J.R. Green are forming a partnership to which Bell will devote one-third time and Green will devote full time. They have discussed the following alternative plans for sharing income and loss: ( a ) in the ratio of their initial capital investments, which they have agreed will be $104,000 for Bell and $156,000 for Green; ( b ) in proportion to the time devoted to the business; ( c ) a salary allowance of $4,000 per month to Green and the balance in accordance with the ratio of their initial capital investments; or ( d ) a salary allowance of $4,000 per month to Green, 10% interest on their initial capital investments, and the balance shared equally. The partners expect the business to perform as follows: year 1, $36,000 net loss; year 2, $76,000 net income; and year 3, $188,000 net income.
Required
Prepare three tables with the following column headings.