Able, Baker, and Collins formed a partnership on January 1, 2016, with investments of $200,000, $250,000, and $350,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of $25,000 to Able, $20,000 to Baker and $15,000 to Collins, and (3) sharing the remainder of the income or loss in a ratio of 25% for Able, and 25% for Baker and 50% for Collins. Partnership net income was $200,000 in 2016. Each partner withdrew $1,000 for personal use every month during 2016.

Set up beginning Partner Capital accounts as of 1/1/2016
Distribute 2016 income to the partners
Determine Partner Capital Accounts as of 12/31/2016