Exercise 11-8 Profit allocation, statement of changes in equity, balance sheet LO3 Klth Williams and Brian Adams were students when they formed a partnership several years ago for a part-time business called Music Works. Adjusted trial balance information for the year ended December 31, 2020, appears below Account Accounts payable Accumulated depreciation Brian Adams, capital Brian Adams, withdrawals Cash Equipment Expenses Balance $ 10,200 32,000 29,000 67,00 216,400 314,000 109,000 Account Keith Hons, capital Keith Williams, there Note payable, due Hey 28224 Office Supplies Revenues uts payable Balance $ 35,320 57,600 134,099 23,00 494,809 1,900 Assume all account balances are normal The partners made no investments during the year ***$47,000 of the note payable is due in May 2021 Required: 1. Prepare calculations that show how the profit should be allocated to the partners assuming the partnership agreement states that profitiosses) are to be shared by allowing a $97.000 per year salary allowance to Williams, a $157,000 per year salary allowance to Adams, and the remainder on a 32 ratio. (Leave no cell blank. Enter "0" when the answer is zero.) Williams Adams Total 0 S Profit Salary allowance Balance of profit to be allocated Balance allocated on a 32 ratio Balance of profit Shares of the partners 0 0 2. Prepare the journal entry to close the Income Summary account to the partners' capital accounts. View transaction list Journal entry worksheet Record the closing of profit to capital. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2020 Record entry Clear entry View general journal 3. Prepare a statement of changes in equity and a classified balance sheet. MUSIC WORKS Statement of Changes in Equity For Year Ended December 31, 2020 Williams Adams Total Total $ 0 S 0 $ CA 0 0 MUSIC Balance She Denem32020 Assets Current assets: $ 0 Total current assets Property, plant and equipment: Total assets $ Liabilities Current liabilities: Total current liabilities Non-current liabilties. Total abilities Elity Total outy Totates and out