12-4A (Algo) Partnership income allocation, statement of partners' equity, and closing entries LO P2 [The following information applies to the questions displayed below] Mo, Lu, and Barb formed the MLB Partnership by making investments of $70,200, $273,000, and $436,800, respectively They predict annual partnership net income of $466,500 and are considering the following alternative plans of sharing Income and loss: (a) equally. (b) in the ratio of their initial capital investments; or (c) salary allowances of $81,200 to Mo, $60,900 to Lu, and $91,500 to Barb, interest allowances of 10% on their initial capital investments, and the remaining balance shared as follows: 20% to Mo, 40% to Lu, and 40 % to Barb Problem 12-4A (Algo) Part 2 2. Prepare a statement of partners' equity showing the allocation of income to the partners assuming they agree to use plan (c), that income earned is $466,500, and that Mo, Lu, and Barb withdraw $35,700, $49,700, and $65,700, respectively, at year-end. (Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values.) MLB PARTNERSHIP Statement of Partners' Equity For Year Ended December 31 Mo Lu Barb Total Initial partnership investments 70,200 273,000 436,800 780,000 Net income Salary allowances Interest allowances Balance allocated 81,200 60,900 91,500 7,020 27,300 43,680 Total net income 88,220 88,200 135,180 311,600 Total 158,420 361,200 571,980 1,091,600 Less partners withdrawals 0 $ 158,420 $ 361,200 $ 571,980 $ 1,091,600