Bill Beck, Bruce Beck, and Barb Beck formed the BBB Partnership by making capital contributions of $67,500, $262,500, and $420,000, respectively. They predict annual partnership net income of $450,000 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 $80,000 to Bill, $60,000 to Bruce, and $90,000 to Barb; interest allowances of 10% on their initial capital investments; and the balance shared as follows: 20% to Bill, 40% to Bruce, and 40% to Barb.

Required:
1.	Use the table to show how to distribute net income of $450,000 for the calendar year under each of the alternative plans being considered. (Do not round intermediate calculations.) Income (Loss) Sharing Plan
	Bill Bruce Barb Total

Plan(a)

Net Income Loss

Balance Accocated equally

Balance of income (Loss)

Shares to the Partners

Plan (B)

Net Income Loss

Balance allocated in proportion to initial inv

Balance of income (Loss)

Shares to the Partners

Plan (C)

Net income (Loss)

Salary allowances

Balance of income (Loss)

Interest Allowances

Balance of income (loss)

Balance allocated

Balance of income (Loss)

Shares of the partners

2.

Prepare a statement of partners equity showing the allocation of income to the partners assuming they agree to use plan (c), that income earned is $209,000, and that Bill, Bruce, and Barb withdraw $34,000, $48,000, and $64,000, respectively, at year-end.

3.

Prepare the December 31 journal entry to close Income Summary assuming they agree to use plan (c) and that net income is $209,000. Also close the withdrawals accounts.

1.Record the entry to close the income summary account assuming the partners agree to use plan(c) and net income is $209,000.

2.

Record the entry to close the income summary account assuming the partners agree to use plan(c) and net income is $209,000.

Record the entry to close the partners' withdrawals accounts. (Bill, Bruce, and Barb withdraw $34,000, $48,000, and $64,000, respectively, at year-end.)