equity showing the allocation of income to the partners assuming they etc); that income earned is $87,600; and that Cook, Jing, and Schwartz withdraw 18,000, $38,000, and $24,000, 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 $87,600. Also close the withdrawals accounts. 12-5B drawal and Part 1. Gibbs, Hook, and Chan are partners and share income and loss in a 5:1:4 ratio (in percents: Gibbs. 50%; Hook, 10%; and Chan, 40%). The partnership's capital balances are as follows: Gibbs, 5606,000; Hook, $148,000; and Chan, $446,000. Gibbs decides to withdraw from the partnership. Prepare journal entries to record Gibbs's April 30 withdrawal under each separate assumption: a. Gibbs sells her interest to Brady for $250,000 after Brady is approved as a partner. b. Gibbs gives her interest to a daughter-in-law, Kannon, and Kannon is approved as a partner. c. Gibbs is paid $606,000 in partnership cash for her equity. d. Gibbs is paid $350,000 in partnership cash for her equity. e. Gibbs is paid $200,000 in partnership cash plus manufacturing equipment recorded on the partnership books at $538,000 less its accumulated depreciation of $336,000. Part 2. Assume that Gibbs does not retire from the partnership described in part 1. Instead, Chip is admit- ted to the partnership on April 30 with a 20% equity. Prepare journal entries to record the entry of Chip under each separate assumption: Chip invests (a) $300,000; (b) $196,000; and (c) $426,000. Chan, $10,080