1.Partner A, Partner B and Partner C are partners in ABC Associates.The partnership agreement provides that income be allocated in the following manner:

a.Each partner receives interest of 15% of beginning capital.

b.Partner A receives an annual salary of $75,000

c.Partner B receives an annual salary of $60,000.

d.Partner C receives a bonus of 20% of partnership income after deducting interest, salaries and bonus.

e.Any remaining income is shared in a 2:4:4 ratio.

f.All provisions are to be fully implemented.

g.The partnership income for the year was $300,000.

h.Beginning capital balances are: Partner A $330,000; Partner B $150,000; Partner C $95,000.

Determine the allocation of partnership income among the partners. Display your calculations in detail:

Document the balance in each partner's capital account.

Document a balance in the "Income Summary" account of $300,000.

Prepare the entry to allocate the partnership income to each partner.