Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions of $276.000, $312,000, and $206,000, respectively. They anticipate annual profit of $476,400 and are considering the following alternative plans of sharing profits and losses: a. Equally; b. In the ratio of their initial investments; or c. Salary allowances of $126,000 to Conway, $101,000 to Chan, and $76,000 to Scott and interest allowances of 12% on initial investments, with any remaining balance shared equally. Required: 1. Use the schedule to show how a profit of $476,400 would be distributed under each of the alternative plans being considered. (Enter all amounts as positive values.) Profit (Loss) Sharing Plan Calculations Share to Conway Share to Chan Share to Scott Total (a) Profit $ 276,000 $ 312,000 Profit Profit Salary allowances Interest allowances Total salaries and interest allocation Balance of Profit 312.000 $ 206,000 $ 794,000 576 000 $ 45,000 $ 633,000 $ 476,400 $ 23,001 $ 452,100 64,646 % 5,554,545 X $ 87,647 6.006.645 $ 6,193,846 $ 45,000 54,554 % $ 99,554 (5,717,446) 71,445 5,445 45,000 $ 21,000 Balance allocated equally Balance of Profit (5.788.891) $ 6,265,291 Shares of partners $ 104,999 132.647 6.027.645 Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 2. Prepare a statement of changes in equity showing the allocation of profit to the partners, assuming they agree to use alternative (c) and the profit actually earned for the year ended December 31, 2020, is $476,400. During the year, Conway, Chan, and Scott withdraw $56,000, $46,000, and $36,000, respectively. (Enter all amounts as positive values.) CCS Consulting Statement of Changes in Equity For Year Ended December 31, 2020 Conway Chan Scott Total Capital, January 1 12,000 X 46,000 36,000 94,000 Add: Investments by partners 56,000 X 4,600 X 36,000 96,600 Less: Loss 45,222 5,555 X 4,500 X 55,277 Total 101,222 10.155 40,500 151,877 Less: Investments by partners % 45,222 45,210 x 54,545 X 144,977 Capital, December 31 5 6,000 (35,055) (14,045) 6,900 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. X 3. Prepare the December 31, 2020, journal entry to close Income Summary assuming they agree to use alternative (c) and the profit is $476,400. Also, close the withdrawals accounts. No Credit Date General Journal December 31, 202 Ben Conway, withdrawals Debit 45,000 $ Ida Chan, capital 78,552 % December 31, 202 Clair Scott, capital 56,000 X 452.000 Ida Chan, capital Income summary 12,000 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted