Funk, George, and Lafayette LLP had equity balances on January 1, 2015, as follows:

David Funk .......................... $160,050

Nathan George .......................87,600

Princess Lafayette .....................69,300

George and Lafayette received annual allowances of $50,000 each, and the partners' equity accounts were credited 8% interest on their January 1 capital balance. Any remaining income is to be shared in a ratio of 2:1:1. The partnership had a net loss of $102,000 for 2015. The salary and interest allowances were distributed to the partners during the year.

Instructions

1. Determine the division of income among the three partners.

2. Prepare the journal entries to close the net loss and withdrawals to the individual

partner equity accounts.

3. Prepare a statement of changes in partnership equity for 2015.