Bill Beck, Bruce Beck, and Barb Beck formed the BBB Partnership by making capital contributions of $72,900, $283,500, and $453,600, respectively. They predict annual partnership net income of $481,500 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 $82,400 to Bill, $61,800 to Bruce, and $93,000 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 $481,500 for the calendar year under each of the alternative plans being considered. (Do not round intermediate calculations.)

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 $219,200, and that Bill, Bruce, and Barb withdraw $37,600, $51,600, and $67,600, respectively, at year-end. (Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values.)

3.	Prepare the December 31 journal entry to close Income Summary assuming they agree to use plan (c) and that net income is $219,200. Also close the withdrawals accounts.