Keith 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	Balance*			Account	Balance*
Accounts payable	$	11,500		Keith Williams, capital**	$	48,300
Accumulated depreciation		95,000		Keith Williams, withdrawals		70,000
Brian Adams, capital**		42,000		Note payable, due May 2022***		160,000
Brian Adams, withdrawals		80,000		Office supplies		36,000
Cash		232,000		Revenues		520,000
Equipment		340,000		Utilities payable		3,200
Expenses		122,000

*Assume all account balances are normal.
**The partners made no investments during the year.
***$60,000 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 profit/(losses) are to be shared by allowing a $110,000 per year salary allowance to Williams, a $170,000 per year salary allowance to Adams, and the remainder on a 3:2 ratio. (Leave no cell blank. Enter "0" when the answer is zero.) 

2. Prepare the journal entry to close the Income Summary account to the partners’ capital accounts.    

3. Prepare a statement of changes in equity and a classified balance sheet.