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Item 4 1 points eBookCheck my workCheck My Work button is now enabled 4 Item 4 Liam and Katano formed a partnership to open a

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Liam and Katano formed a partnership to open a sushi restaurant by investing $106,000 and $116,000, respectively. They agreed to share profit based on an allocation to Liam of an annual salary allowance of $161,000, interest allowance to both Liam and Katano equal to 12% of their beginning-of-year capital balance, and any balance based on a 1:3 ratio, respectively. At the end of their first year, December 31,2023, the Income Summary had a credit balance of $41,000. Liam withdrew $18,000 during the year and Katano $35,000.
Required:
1. Determine each partners share if the first-year profit was $41,000. Prepare the entry to close the Income Summary on December 31,2023.(Leave no cell blank. Enter "0" when the answer is zero. Negative answers should be indicated by a minus sign.)
2. Calculate the balance in each partners capital account at the end of their first year. (Negative answers (i.e. debit account balances) should be indicated by a minus sign.)

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