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 $31,2023,$ appears below.

Account Balance$*$ Account Balance$*$

Accounts payable $ $9,500$ Keith Williams, capital$**$ $ $28,300$

Accumulated depreciation $75,000$ Keith Williams, withdrawals $50,000$

Brian Adams, capital$**22,000$ Note payable, due May $2025***120,000$

Brian Adams, withdrawals $60,000$ Office supplies $16,000$

Cash $208,000$ Revenues $480,000$

Equipment $300,000$ Utilities payable $1,200$

Expenses $102,000$

$*$Assume all account balances are normal.

$**$The partners made no investments during the year.

$***$$$40,000$ of the note payable is due in May $2024.$

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 $$90,000$ per year salary allowance to Williams, a $$150,000$ 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.