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 $ $10,600$ Keith Williams, capital$**$ $ $39,300$

Accumulated depreciation $86,000$ Keith Williams, withdrawals $61,000$

Brian Adams, capital$**33,000$ Note payable, due May $2025***142,000$

Brian Adams, withdrawals $71,000$ Office supplies $27,000$

Cash $221,200$ Revenues $502,000$

Equipment $322,000$ Utilities payable $2,300$

Expenses $113,000$

$*$Assume all account balances are normal.

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

$***$$$51,000$ 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 $$101,000$ per year salary allowance to Williams, a $$161,000$ 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.