below.] Mo, Lu, and Barb formed the MLB Partnership by making investments of $85,500, $332,500, and $532,000, respectively. They predict annual partnership net income of $555,000 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 $88,000 to Mo, $66,000 to Lu, and $100,000 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.

3. Prepare the December 31 journal entry to close Income Summary assuming they agree to use plan (c) and that net income is $555,000. Mo, Lu, and Barb withdraw $46,000, $60,000, and $76,000, respectively, at year-end. Also close the withdrawals accounts.

• Record the entry to close the income summary account assuming the partners agree to use plan c and net income is $555,000.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31	Income summary
	Barb, Capital
	Lu, Capital
	Mo, Capital