Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions of $274,000, $310,000, and $204,000, respectively. They anticipate annual profit of $472,800 and are considering the following alternative plans of sharing profits and losses:

Equally;

In the ratio of their initial investments; or

Salary allowances of $125,000 to Conway, $100,000 to Chan, and $75,000 to Scott and interest allowances of 15% on initial investments, with any remaining balance shared equally.

Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions of $274000,$310,000, and $204,000, respectively. They anticipate annual prolit of $472,800 and are considering the following altemative plans of sharing profits and losses: a. Fqually, b. In the ratio of theit inilial investrnents; o c. Salary allowances of 5125,000 to Conway, $100,000 to Chan, and 575,000 to Scott and interest allowances of 15% on inttal investments, with any remaining balance shared ecually. Required : 1. Use the schedule to show how a profit of $472,800 would be distributed under each of the alternative plans being considered. (Enter all amounts as positive values.) 2. Prepare a statement of changes in equity showing the allocation of profit to the partners, assuming they agree to use atternative (c) and the profit actually eamed for the year ended December 31 , 2020, is $472,800. During the year, Conway, Chan, and Scott withdraw $55,000,$45,000 and $35,000, respectively. (Enter all amounts as positive values.) 3. Prepare the December 31, 2020, journal entry to close Income Summary assuming they agree to use alternative ic: and the profit is $472,800. Also, close the withdrawals accounts. Journal entry worksheet Record the entry to close income summary. Trove: Lriter debits before bredits