Net income for Ros-Belle partnership for 2021 was $125,000. Rosalie and Belle agreed to distribute partnership net income according to the following plan in order: - Interest on average capital balances 7%, 7% - Bonus on net income before the bonus but after interest on average capital balance 12% - Salaries Rosalie $40,000, Belle $50,000 - Residual (if positive) Rosalie 60%, Belle 40% \
- Residual (if negative) Rosalie 50%, Belle 50% Additional Information for 2021 follows: 1. Rosalie began the year with a capital balance of $75,000. 2. Belle began the year with a capital balance of $100,000. 3. On March 1, Rosalie invested an additional $25,000 into the partnership. 4. On October 1, Belle invested an additional $20,000 into the partnership. 5. Throughout 2021, each partner withdrew $200 per week in anticipation of partnership net income. The partners agreed that these withdrawals are not to be included in the computation of average capital balances for purposes of income distributions. > Required:
a. Prepare a schedule that reveals the computations of each partner's weighted-average capital. b. Prepare a schedule that discloses the distribution of partnership net income for 2021. c. Prepare the statement of partners' capital at December 31, 2021