Alex Jeffers, Jo Ford, and Rose Verne invested $32,500, $45,500, and $52,000, respectively, in a partnership. During its first calendar-year, the firm earned $391,200.

Required

Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $391,200 net income to the partners under each of the following separate assumptions: The partners 

(1) have no agreement on the method of sharing income and loss; 

(2) agreed to share income and loss in the ratio of their beginning capital investments; and 

(3) agreed to share income and loss by providing annual salary allowances of $40,000 to Jeffers, $35,000 to Ford, and $46,000 to Verne; granting 8% interest on the partners’ beginning capital investments; and sharing the remainder equally.