Directions: Please complete the following problem in Excel.1. Kara Ries, Tammy Bax and Joe Thomas invested $80,000, $112,000 and $128,000respectively in a partnership. During its first calendar year, he firm earned $249,000.Prepare the entry to close the firms Income Summary account as of its December 31year-end and to allocate the $249,000 net income to the partners under each of thefollowing separate assumptions: The partners1. Have no agreement on the method of sharing income and loss. 10 pts.2. Agreed to share income and loss in the ratio of their beginning capitalinvestments and 15 pts.3. Agreed to share income and loss by providing annual salary allowances of$66,000 to Ries, $56,000 to Bax, and $80,000 to Thomas: granting 10% interest onthe partners beginning capital investments and sharing the remainder equally.15 pts.2. Kohler Corporation reports the following components of stockholders equity onDecember 31, 2013:Common Stock-$10 par value, 100,000 shares authorized, 40,000shares issued and outstanding. $400,000Paid-in capital in excess of par value, common stock 60,000Retained Earnings 270,000Total Stockholders Equity $730,000In 2014, the following transactions affected its stockholders equity accounts.Jan. 1: Purchased 4,000 shares of its own stock at $20 cash per share.Jan. 5: Directors declared a $2 per share cash dividend payable on Feb. 28 to thestockholder of record.Feb 28: Paid the dividend declared on January 5.July 6: Sold 1,500 of its treasury shares at $24 cash per share.Aug. 22: Sold 2,500 of its treasury shares at $17 cash per share.Sept. 5: Directors declared a $2 per share cash dividend payable on October 28 tothe September 25 stockholders of record.Oct 28: Paid the dividend declared on September 5.Dec. 31: Closed the $388,000 credit balance (from net income) in the IncomeSummary account to Retained Earnings.Required:1. Prepare journal entries to record each of these transactions for 2014. 5pts. foreach entry.2. Prepare a statement of retained earnings for the year ended December 31, 2014.10 pts.3. Prepare the stockholders equity section of the companys balance sheet as ofDecember 31, 2014. 10 pts