After closing the revenue and expense accounts, the profit for the year ended December 31, 2021 of the Mitt & Ryan partnership is $25,100. The partnership agreement specifies that profits and losses will be shared using the following formula. 1. 2. Allocate profit by a 5% interest allowance on the partners' beginning capital balances. Allocate salary allowances of $17,990 to Mitt and $12,890 to Ryan. Remaining profit (loss) is to be shared on a ratio of 8:5. 3. At the beginning of the year, Mitt's capital account had a balance of $30,200 and Ryan's capital account had a balance of $32,300 Mitt withdrew $1,010 cash per month while Ryan withdrew $1,210 per month from the partnership. During the year, Mitt made an additional investment of $5,100 cash into the partnership. Prepare a schedule to show how the profit or loss will be allocated to the two partners. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45)) MITT & RYAN Division of Profit Year Ended December 31, 2021 Mitt Ryan $ Total Profit $ Interest allowance Mitt Ryan Total Profit remaining for allocation Salary allowance Mitt Ryan Total Profit (deficiency) remaining for allocation Fixed ratio Mitt Ryan Total Profit remaining for allocation Profit allocated to the partners $ Prepare a statement of partners' equity for the year (Listitems that increase partner's equity first.) MITT & RYAN Statement of Partners'Equity Year Ended December 31, 2021 Mitt Ryan To $ $ $ > > Total Expenses Total Revenues Capital, December 31 Net Income/(Loss) Capital, January 1 Drawings Revenues Gross Profit/(Loss) Expenses Investments $ $ $ Prepare the remaining closing entries on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021 (To close profit/loss to capital accounts) Dec 31, 2021 (To close drawings account of partners) Prepare the remaining closing entries on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021 capital accounts) Dec. 31, 2021 Cash Income Summary Mitt, Capital Ryan, Drawings Ryan, Capital (To close drawings account of partners)