After closing the revenue and expense accounts, the profit for the year ending December 31, 2017 of the Mo & Molly partnership is $129,000. The partnership agreement specifies that profits and losses will be shared using the following formula.

1. Allocate salary allowances of $24,000 to Mo and $30,000 to Molly. 2. Remaining profit (loss) is to be shared on a ratio of 2:1.

At the beginning of the year, Mos capital account had a balance of $45,000 and Mollys capital account had a balance of $26,000. Mo withdrew $1,400 cash per month while Molly withdrew $2,800 per month from the partnership.

Prepare a schedule to show how the profit will be allocated to the two partners. Prepare a statement of partners equity for the year.