Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions of $245,000, $280,000, and $175,000, respectively. They anticipate annual profit of $360,000 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 $110,000 to Conway, $85,000 to Chan and $60,000 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 $360,000 would be distributed under each of the alternative plans being considered (Enter all amounts os positive values.) Profit (Loss) Sharing Plan Share to Conway Share to Chan Share to Scott Total Bee 5 360.000 Calculations Profit Profit Profit Salary allowances Interest allowances Total salaries and interest allocation Balance of Pront Balance allocated equally Balance of Prot Balance allocated equally Balance of Profit Shares of partners 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 $360,000. During the year, Conway, Chan, and Scott withdraw. $40,000 $30,000 and $20.000, respectively. (Enter all amounts as positive volues.) CCS Consulting Statement of Changes in Equity For Year Ended December 31, 2020 Conway Chan Scott Total Capital January Total Capital December 31 3. Prepare the December 31, 2020, journal entry to close Income Summary assuming they agree to use alternative (c) and the profit is $360,000. Also, close the withdrawals accounts View transaction lint Journal entry worksheet 1 Record the entry to close Income summary Net Enter debts before credits Date General Journal Dobit Credit December 31, 2020 Journal entry worksheet 1 31 Record the entry to close withdrawals accounts. Note Enter debits batore credits General Journal Dobit Credit Date December 31, 2020